IF: FX round-up: Dollar slides ahead of slew of data
The dollar registered broad losses on Tuesday as investors gear up for a raft of US economic data although trade remained relatively subdued ahead of the Thanksgiving holiday.
The dollar index, which measures the US currency against a basket of six rivals, fell to 80.550 from 80.617 on Tuesday.
The greenback came under pressure after the Conference Board’s consumer confidence barometer for the month of November fell to the 70.4 level compared to 72.4 in October.
In contrast the Case/Shiller Home Price Index rose a better than expected 13% on an annualised basis. Building permits climbed 6.2% in October from the previous month, to the highest level since mid 2008.
Otherwise the spotlight turned to orders for durable goods data and Thursday’s holiday and weekly jobless claims.
The Commerce Department is due to release its report on orders for durable goods which is expected to decline in October after September’s 3.8% increase.
On Thursday, weekly jobless claims are expected rise modestly to 330,000 but overall claims are on the decline. The Chicago PMI, the Conference Board’s report on leading economic indicators and consumer sentiment for November are also due out on Wednesday.
Elsewhere the euro firmed 0.3% to $1.3554 on speculation that Eurozone inflation data later in the week could reveal a slight increase in prices, something that would reduce expectations that the European Central Bank will take further action to combat deflationary pressures.
The dollar changed hands at ÂĄ101.54 from ÂĄ101.23 while the British pound was flat ahead of third-quarter gross domestic product data.
Last month the Office for National Statistics’ preliminary reading showed 0.8% growth from the previous quarter, the strongest reading in over three years. Sterling traded at $1.621, unchanged from the previous session.
