RTTN: Dollar Rises To New Multi-day Highs Against Euro And Pound
(RTTNews) - Wednesday during European deals, the dollar edged higher against its major counterparts. The dollar thus soared to a 1-week high against the pound and a 9-day high against the euro, while it recovered from a 6-day low against the yen.
The U.S. Commerce Department is set to release its durable goods orders report at 8:30 am ET. Economists look forward to a 0.5% decline in durable goods orders for June.
At 2:00 pm ET, the Federal Reserve is due to release its Beige Book, which is a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts. The report is normally released about two weeks before the monetary policy meeting is held.
The dollar climbed to a 1-week high of 1.6349 against the pound during early deals on Wednesday. The next upside target level for the dollar is seen at 1.631. At yesterday's close, the pound-dollar pair was quoted at 1.6431.
According to the Bank of England report released today, the number of loans approved for house purchase in the U.K. totaled 47,584 in June. Approvals in June was larger than May's 44,169 and 47,000 expected by economists. Meanwhile, the number of loans approved for other purposes stood at 29,509, which was also higher than in May.
The dollar strengthened against the yen after dropping to a 6-day low of 94.03 at 3:30 am ET Wednesday. At present, the dollar-yen pair is worth 94.85, up from Tuesday's close of 94.57. The near term resistance for the pair is seen around the 95.2 level.
Japan's Ministry of Finance upgraded its economic assessment for the regional economy. The ministry, thus raised its view for the first time in five years. The ministry raised the assessment for 10 of the nation's 11 regions. In its latest quarterly report, the ministry reiterated that the conditions in Okinawa remain severe.
An official report showed earlier today that retail sales in Japan fell in June for the tenth consecutive month, mainly reflecting a decline in sales of merchandise goods and clothing. Retail sales dropped 3% year-on-year in June, faster than a 2.7% drop in the preceding month. Total sales dropped to JPY 10.65 trillion from JPY 10.74 trillion yen in the preceding month.
The dollar jumped to a 9-day high of 1.4112 against the euro by about 2:25 am ET Wednesday. Thereafter, the dollar eased but bounced back shortly and the pair is now trading at 1.4136 with 1.406 seen as the next target level. The euro-dollar pair was worth 1.4171 at Tuesday's close.
