USD dropped with surprisingly weak U.S. second quarter growth data

August 2, 2016

Expectations for a U.S. rate hike before the end of year also declined last week’s surprisingly weak U.S. second quarter growth data.

This article is originally referred from Traders Trust Blog

The U.S. dollar dropped against its Canadian counterpart on Tuesday, despite the release of upbeat U.S. data, as lower expectations for a rate by the Federal Reserve before the end of the year continued to weigh broadly on the greenback.

The Commerce Department said personal spending, which measures how much Americans spend, increased 0.4% in June from a month earlier. Economists had forecast an increase of 0.3%.

Household spending, which accounts for more than two-thirds of economic output in the U.S., also climbed 0.4% in May.

Personal income rose 0.2%, falling short of forecasts of 0.3% growth.

But the greenback remained under pressure after Dallas Fed head Robert Kaplan urged caution on raising U.S. interest rates amid a raft of risks facing the global economy.

Expectations for a U.S. rate hike before the end of year also declined last week’s surprisingly weak U.S. second quarter growth data.

Meanwhile, demand for the commodity-related Canadian dollar strengthened as oil prices moved higher on Tuesday, although supply glut concerns persisted.

Disclaimer: The content in this article is Investment Research and should not be construed as containing Investment Advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. TTCM Traders Trust Capital Markets Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Original Source: Traders Trust Blog

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