U.S. Dollar Continues to Ease as Data Misses


The U.S. currency declined for a second day against major peers on Thursday after an unexpected drop in durable goods orders yesterday. That added to its worst slide in more than three years last week, when the Federal Reserve cut projections for interest rates and indicated the path to policy normalization would depend on the state of the recovery.

U.S. economic indicators are undershooting economists’ estimates by the most in six years, according to the Bloomberg Economic Surprise Index. The spread between the measure and a gauge of dollar strength remains near the widest on record after the currency peaked earlier this month. HSBC Holdings Plc says that suggests the greenback has further to fall.

“The dollar bull run is starting to turn,” said Dominic Bunning, a senior currency strategist at the HSBC in Hong Kong. “It’s already clear that U.S. data is underperforming expectations, and has been for the past couple of months,” which may keep the Fed on a very slow path to raising rates, he said.

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