Forexpros – The U.S. dollar fell against most of its counterparts as strong U.S. economic data triggered demand for riskier assets
During mid session London trade, the greenback was down against the euro, with EUR/USD advancing 0.12% to hit 1.3066.
The U.S. dollar suffered from a lack of demand for safe haven buying as better than expected U.S. consumer spending and new home sales ignited interest in higher yielding assets.
The greenback was also down against the pound, with GBP/USD gaining 0.022% to hit 1.5681.
U.S. Consumer spending increased by 0.3% in November, posting its fifth straight monthly advance.
In addition, new home sales climbed 2.6% last month adding to the optimism that the economy is on the rebound.
Kit Juckles of Societe Generale stated to Bloomberg, “The dollar is drifting gently lower, risk remains very tentatively on.”
Meanwhile, the greenback was lower against the yen and the Swiss franc with USD/JPY off by 0.18% to hit 78.03 and USD/CHF giving back 0.05% to hit 0.9356.
The greenback was lower against its Canadian, Australian and New Zealand counterparts with USD/CAD falling 0.17% to hit 1.0188, AUD/USD gaining 0.28% to hit 1.0159 and NZD/USD easing higher by 0.05% to 0.7746.
