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The euro vs. the U.S. dollar pushed higher in euro zone trading after Friday’s 50 plus pip loss on better than expected euro zone Manufacturing Purchasing Managers’ Index jump to 48.3.  Although the reading is below the 50 level the reading clear showed improvement over the previous month’s reading of 47.8. 

The U.S. dollar gave way to the New Zealand dollar (NZD) early in the Asian trading (8:30 p.m. EDT – 11:00 p.m.) when New Zealand Merchandise Terms of Trade jumped by 4.1% for Q1.  It’s the first positive result since a December of 2011.  New Zealand Merchandise Terms of Trade has seen 6 consecutive quarters of decline. 

The U.S. dollar this morning is losing ground against the major currency pairs as trader sentiment weighs on key upcoming U.S economic data. Namely the Weekly U.S. Initial Jobless Claims report.

 The British pound continues to hold onto its gains against the U.S. dollar going into afternoon trading. The U.S. came under pressure with the Japanese yen which spread the weakness to the other majors.

The EUR/USD drifted lower during the Asian and European sessions on continued concerns over the U.S. Federal Reserve recent comments of tapering its monetary easing program this year.

The U.S. dollar is being taken out to the woodshed this morning against the Japanese yen with the USD/JPY lower by 1.5% on the U.S. session. With a steady trek from the lower left hand corner to the upper right hand corner in the daily chart of the USD/JPY what changed literally overnight?

The Federal Reserve talk about tapering its monetary easing programs is getting louder and in turn speculation is ramping up as well.  The U.S. dollar climbed higher against the majors on these comments and comments from John Williams, President of the San Francisco Fed.

The USD/JPY trade continues to be the currency pair that traders are piling into as the pair nears a 4 ½ year high.

 Looking across the currency landscape this morning I wanted to circle back around to the USD/CAD currency pair this morning.

 The U.S. dollar last week was stronger across the broad spectrum and continues to remain strong as we begin the new week.