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Dollar mixed to lower on U.S. data in quiet session

Published 04/22/2014, 03:29 PM
Updated 04/22/2014, 03:31 PM
Dollar dips in listless trading
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Investing.com - The dollar traded mixed to lower against most major currencies on Tuesday, after investors priced in U.S. housing and regional factory data and sought fresh steering currents in a listless session.

In U.S. trading on Tuesday, EUR/USD was up 0.08% at 1.3804.

Industry data revealed that existing home sales in the U.S. fell by 0.2% in March to 4.59 million units, and while soft, the numbers did beat expectations for 4.55 million units.

A separate report showed that the Richmond Fed manufacturing index jumped to 7 this month, from a reading of -7 in March, beating expectations for a reading of 0.

The numbers gave the greenback some support, though many investors remained in standby mode ahead of a speech European Central Bank President Mario Draghi on Thursday, which allowed the greenback to edge lower in quiet trading.

Draghi warned earlier this month that further gains in the euro would trigger additional monetary easing to keep inflation rates in comfort zones.

The annual rate of euro zone inflation slowed to 0.5% in March, the lowest since November 2009.

Euro zone inflation has now been in the ECB’s danger zone of below 1% for six straight months, adding to pressure on policymakers to implement fresh stimulus measures to shore up the region's fragile recovery.

The dollar was down slightly against the yen, with USD/JPY down 0.02% at 102.61, and flat against the Swiss franc, with USD/CHF down 0.01% at 0.8850.

The greenback was down against the pound, with GBP/USD up 0.20% at 1.6826.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.13% at 1.1027, AUD/USD up 0.40% at 0.9365 and NZD/USD up 0.32% at 0.8598.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 79.98.

On Wednesday, the U.S. is to publish reports on new home sales and manufacturing activity.

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