Currency Forex online trading: The dollar fell across the board on Monday April 1, sliding to a nearly four-week low against the yen; as softer-than-expected U.S. manufacturing data for March interrupted a run of generally upbeat economic reports according to a report in Reuters.com.
The yen, meanwhile, firmed on safe-haven flows following unexpectedly weak Chinese factory activity and renewed uncertainty in the Korean peninsula.
Volume, however, was thin, with many markets still closed for Easter holidays, and the low liquidity led to exaggerated currency moves. Besides of the low liquidity, currency Forex online trading never stops.
A weaker-than-forecast U.S. manufacturing report kicked off selling in the dollar. The Institute for Supply Management said its index of national factory activity fell to 51.3 from 54.2 the month before. The reading was shy of expectations of 54.2 according to a Reuters poll of economists.
"There are some clear signs that recent growth momentum in the manufacturing sector will not be easily built," said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York. For currency Forex online trading operations, the US dollar was not a good deal.
"The data will tend to undercut some of the enthusiasm in the long dollar exposure." The greenback has been in a broad rally this year as evidence mounted that the U.S. economy is on a stable path to recovery. The dollar index has gained 3.6 percent so far in 2013.
Ruskin pointed out that it's not all "gloom and doom" for the U.S. manufacturing report, with both the employment and new orders components posting new highs.
In midday trading, the dollar index, which measures the greenback's value against six major currencies, was down 1.6 percent to 82.690. It fell as low as 82.647, a one-week trough. That means most currency Forex online trading operations where against US dollar.
The dollar fell nearly 1.0 percent to 93.28 yen, falling as low as 93.16, the lowest since March 6. The euro also slid 0.7 percent to 119.98 yen.
"We're seeing safe-haven flows from the Australian and New Zealand dollars into the yen because of the weak Chinese data," said Ravi Bharadwaj, market analyst at Western Union Business Solutions in Washington.
China's official Purchasing Managers Index reached 50.9 in March, just shy of market expectations of a jump to 52 from February's 50.1. Investors in currency Forex online trading could have the advantage of the market situation if they trade carefully.