News Economics by Forexyard USD the dollar recovers then 3 days in low the dollar advanced against the euro during the day on Tuesday, and gained ground against most currencies, while the stock market fell, and the Institute of Supply Management reported that the U.S. economy shrank at a slower than expected pace. The ISM Non-Manufacturing Index reached a result of 43.7 in April, compared to 40.8 for last month. It is the most significant result from October. On the other hand, several investors sold euros once it reached the pair $1.3440 area, above all, by the reigning uncertainty as to the decision that would take the ECB during the session on Thursday. In addition, outcomes that lie ahead with regard to banking audit that the American Government is carrying out added pressure. The dollar gained 0.8% and reached $1.3280 per euro, compared to $1.3406 yesterday.
The American currency gained 0.2% reaching the 98.97 against the yen, with regard to the previous 98.80. After the comments by the Fed Chairman, Ben S. Bernanke, the dollar advanced against the euro. Bernanke said that the pace of economic contraction this ceding, phenomenon that benefited by the report published by the ISM. The assertions that were optimistic by Ben Bernanke and improvement with regard to the published indicator, ended up benefiting the dollar with force. However, remember that the dollar was under pressure during the last 4 weeks, and had traded at a level of $1.2886 / $1.3500 per euro.
Several analysts estimate that the dollar would reach the zone of $1.3000 to Q2. EUR estimated that the ECB will take rates to zero percent yesterday, the European currency fell against the U.S. dollar, while the meeting of the European Central Bank looked forward. Several analysts said that it should take caution when it comes to taking risks, above all, by the announcement that the European Monetary Authority will perform this Thursday, in addition to the possible statements by the Central Bank of England.