FXTM Online Analysis Department.

Currencies

Weak economic data out of the U.S. is never positive for the U.S. dollar (USD) and on Monday, the greenback traded lower. This came as a result of investors locking in profits from the USD’s recent rally while disappointing data prompted negative sentiment regarding the strength of the U.S. economy. Data showed that industrial production in February only climbed 0.1 percent which missed expectations for a 0.2 percent gain. Also, manufacturing output declined by 0.1 percent as a result of declining automobile production. 

This is a clear indication that the growth in the economy could be slower in the first quarter this year. Meanwhile, in a separate report, data showed that manufacturing activity growth and new orders in the New York State declined in March for a 2nd straight month. In forex trading, the EUR/USD traded at 1.0575, up 0.76%, while the USD/JPY held steady at 121.31. Against the British pound and the Swiss franc the greenback traded lower with USD/CHF down 0.09% to 1.0064 while GBP/USD was up 0.30% to 1.4792.