Currency Buzz: US Dollar Stumbles On ECB Effect, Tests Two Week Low

US dollar index fell for a fourth consecutive session to test its lowest mark in around two weeks. Dollar was hurt yesterday after European Central Bank (ECB) chief economist, Peter Praet, indicated that the central bank could be approaching end to its quantitative easing program. He commented that signals showing the convergence of inflation towards our aim have been improving, in turn reflecting that the bank could decide as soon as next week to wind down its EUR30 billion-a-month ($ 35.09 billion) bond-buying program, which is credited for supporting a robust economic recovery in the 19-nation currency union. On the US front, the trade deficit unexpectedly narrowed in the month of April. The Commerce Department said the trade deficit narrowed to $ 46.2 billion in April from a revised $ 47.2 billion in March. In other economic data, Germanys construction sector activity expanded at the fastest pace in four months in May, survey data from IHS Markit showed Wednesday. The construction Purchasing Managers Index rose to 53.9 in May from 50.9 in April. Any reading above 50 indicates expansion in the sector. Dollar’s retreat is more linked to rising European interest rates as the Euro has jumped after comments from Praet. The single currency is quoting around 1.1820 against the US dollar- extending a rebound from ten month low.