The dollar eased off a 16-month trough against the other major currencies on Tuesday, as the dollar began to finally recover from last week’s policy decisions by the Bank of Japan and the Federal Reserve, although gains were expected to remain limited.
Dollar demand strengthened after data earlier showed that China’s Caixin manufacturing purchasing managers’ index ticked down to 49.4 in April from 49.7 the previous month, compared to expectations for a rise to 49.9.
The weak data added to concerns over slowdown in the world’s second largest economy.
EUR/ USD slipped 0.13% to 1.1519, after rising to nine-month highs of 1.1615 earlier.
The dollar pushed higher against the pound, with GBP/USD down 0.78% at 1.4560 and remained lower against the Swiss franc, with USD/CHF slipping 0.16% to 0.9530.
The yen slipped from an 18-month high against the dollar on Wednesday, losing some steam as position squaring set in after its sharp rally since last week.
Dollar Index... Bounced back sharply
Now 91.80 act as major support area and we will see sharp upside rally in it and could touch resistance level at 94.00,
Immediate target look 97---98 mark in coming weeks if closes above 94.00.
More will update soon!!
