News Column

US Dollar Extends Gain After Factory Orders, ISM Non-manufacturing Survey

August 5, 2014

BRUSSELS (Alliance News) - The US dollar continued its early rally against its key counterparts in New York deals on Tuesday, as US factory orders for June and ISM non-manufacturing composite index for July topped economists' forecast.

The report released by the Institute for Supply Management showed that its non-manufacturing index of the US climbed to 58.7 in July from 56.0 in June, with a reading above 50 indicating growth in the service sector. Economists had been expecting the index to edge up to a reading of 56.5.

The US factory orders jumped by 1.1% in June following a revised 0.6% decrease in May, according to a Commerce Department report. Economists had been expecting orders to increase by about 0.6%.

The greenback recovered to 1.6849 against the Sterling, after falling to a 4-day low of 1.6888 at 4:30 am ET.

The greenback drifted up to a 4-day high of 102.83 against the yen, near 9-month high of 1.3363 against the euro and a 6-1/2-month high of 0.9107 against franc, coming off from its early lows of 102.45, 1.3424 and 0.9064, respectively.

The greenback is likely to target resistance around 103.5 against the yen, 1.33 against the euro, 1.67 against the pound and 0.915 against the franc.

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Source: Alliance News

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