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Dollar little changed vs. rivals after positive U.S. data

Published 05/27/2014, 09:12 AM
Dollar holds steady vs. counterparts, U.S. data supports
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Investing.com - The dollar was little changed against the other major currencies on Tuesday, after higher than expected U.S. house price inflation data added to optimism over the housing sector, while markets still eyed further comments by European Central Bank President Mario Draghi.

The dollar was little changed against the euro, with EUR/USD dipping 0.05% to 1.3639

Standard & Poor’s with Case-Shiller said its house price index rose at an annualized rate of 12.4% in March from a year earlier, compared to forecasts for a gain of 11.8% and following a rise of 12.9% in February.

The report came after official data showed that U.S. core durable goods orders, which exclude transportation items, rose 0.1% last month, below expectations for a 0.3% increase. Core durable goods orders in March were revised up to a 2.9% gain from a previously estimated 2.4% rise.

U.S. durable goods orders rose 0.8% in April, confounding expectations for a 0.5% fall, after a 3.6% increase in March, whose figure was revised up from a previously estimated 2.9% rise.

Meanwhile, the euro remained under pressure after ECB President Draghi on Monday said the bank saw a risk of a deflationary cycle taking hold in the euro zone.

The pound was lower against the dollar, with GBP/USD slipping 0.16% to 1.6815.

Industry data earlier showed that U.K. mortgage approvals rose by 42,200 last month, compared to expectations for a 45,200 increase. Mortgage approvals in March were revised down to a 45,000 rise from a previously estimated 45,900 increase.

The dollar was steady against the yen, with USD/JPY inching up 0.01% to 101.94 and higher against the Swiss franc, with USD/CHF rising 0.21% to 0.8965.

Earlier in the day, official data showed that Switzerland's trade surplus widened to 2.425 billion Swiss francs last month, from 1.996 billion Swiss francs in March, whose figure was revised down from a previously estimated surplus of 2.050 billion Swiss francs.

Analysts had expected the trade surplus to widen to 2.052 billion Swiss francs in April.

A separate report showed that the number of employed people in Switzerland remained unchanged at 4.190 million in the first quarter, confounding expectations for a rise to 4.210 million.

The greenback was mixed against the Australian, New Zealand and Canadian dollars, with AUD/USD adding 0.21% to 0.9256, NZD/USD down 0.08% to 0.8543 and USD/CAD edging down 0.12% to 1.0845.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to 80.38.

Later in the day, the U.S. was to produce data on consumer confidence.

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