iFOREX Daily Analysis : May 27, 2016

 | May 27, 2016 06:36AM ET

The dollar pushed lower to a one-week trough against the other major currencies on Thursday, as investors continued to lock-in profits from the greenback’s recent rally to two-month highs, after the release of strong U.S. data added to expectations for an upcoming U.S. rate hike.

The U.S. National Association of Realtors said pending home sales rose by 5.1% last month, beating expectations for a gain of 0.6% and hitting the highest level in over a decade. The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 21 decreased by 10,000 to 268,000, from the previous week’s total of 278,000; while analysts expected jobless claims to fall by 3,000 to 275,000 last week. Separately, the U.S. Commerce Department said durable goods orders rose 3.4% last month, compared to economists' expectations for an increase of 0.5%. Core durablegoods orders, which exclude volatile transportation items, rose 0.4% last month, compared to forecasts for a 0.3% gain.

Elsewhere the euro gained ground after Greece and its creditors reached a deal on Wednesday to unlock €10 billion in bailout funds and trigger work on debt relief, easing concerns over another euro zone debt crisis.

Today the U.S. is to round up the week with a revised estimate of first quarter growth and revised data on consumer sentiment, while this afternoon the Yellen will make her first public appearance in nearly two months at a ceremony when she receives the Radcliffe Medal from Harvard University's Radcliffe Institute for Advanced Study.

EUR/USD

The euro rose moderately on Thursday, extending slight gains from the previous session, as foreign exchange traders awaited comments from Janet Yellen for possible signs of whether the Federal Reserve could tighten its monetary policy cycle next, while the European Central Bank maintains an unorthodox negative interest rate policy.

The currency pair traded between 1.1155 and 1.1217, before settling up 0.34% for the session. Despite the brief gains over the last two sessions, the euro is still in the midst of one of its driest spells on the calendar year. Since hitting nine-months in early-May, EUR/USD has fallen considerably by nearly 3%.

Today Yellen will make her first public appearance in nearly two months at a ceremony when she receives the Radcliffe Medal from Harvard University's Radcliffe Institute for Advanced Study, and investors are hoping that she could provide further hints on the pace of the Fed's long-term rate path in a Question-And-Answer session with Harvard economics professor Gregory Mankiw after the presentation.