Forex - Dollar mostly higher as traders digest data
Published Jun 25, 2013 09:03PM ET
In Asian trading Wednesday, EUR/USD nudged up 0.03% to 1.3086 after European Central Bank President Mario Draghi said the overall economic outlook for the eurozone still warrants accommodating monetary policy, given that inflation is still low and unemployment remains high.
Later Wednesday, Germany is scheduled to release the Gfk report on consumer climate, a leading indicator of consumer spending. Germany is the euro zone’s largest economy.
USD/JPY rose 0.33% to 98.12 after earlier trading as high as 98.24. The weak yen helped boost Japanese stocks as exporters such as automotive giant Toyota rose.
GBP/USD inched down 0.02% to 1.5421 while USD/CHF nudged up 0.04% to 0.9387.
In U.S. economic news out Tuesday, the S&P/Case-Shiller Index of home prices in 20 U.S. metro areas rose 12.1% in April. The 10-city index gained 11.6%. All 20 cities were positive for the fourth straight month. Atlanta, Dallas, Detroit and Minneapolis had the largest year-over-year gains.
The Commerce Department said new home sales rose 2.1% to a seasonally adjusted annual rate of 476,000 units – the highest level in nearly five years. expected new home sales to rise to a 462,000-unit rate in May. Sales surged 29% year-over-year.
U.S. consumer confidence rose to 81.4 in June, easily beating the reading of 75 economists expected. The May reading was 74.3. The U.S. consumer is estimated to account for 70% of GDP in the world’s largest economy.
USD/CAD nudged lower by 0.02% to 1.0512 as oil prices eased a bit despite some constructive comments on crude from Goldman Sachs.
On Tuesday the bank said oil prices will rise in the second half of this year as the global economy continues to improve. Falling production from OPEC members Iraq, Libya and Nigeria along with South Sudan, Sudan and Syria could also factor into upside for oil, according to Goldman.
AUD/USD rose 0.13% to 0.9275 while NZD/USD added 0.07% to 0.7748. The U.S. Dollar Index rose 0.08% to 82.85.
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Written By: Investing.com
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