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Dollar remains broadly lower despite upbeat U.S. data

Published 07/27/2015, 08:39 AM
© Reuters.  Dollar still on the downside vs. rivals ahead of Fed meeting
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Investing.com - The dollar remained lower against a basket of other major currencies on Monday, despite positive U.S. data on durable goods orders, as sentiment on the greenback remained under pressure ahead of this week's policy statement by the Federal Reserve.

The U.S. Commerce Department reported on Monday that total durable goods orders increased by 3.4% last month, beating expectations for a gain of 3.0%. Orders for durable goods in May were revised to a drop of 2.1% from a previously reported decline of 2.2%.

Core durable goods orders, excluding volatile transportation items, inched up by 0.8% in June, topping forecasts for an increase of 0.5%. Core durable goods orders dipped 0.1% in May, whose figure was revised from previously reported flat reading.

Investors were turning their attention to Wednesday’s Fed statement to see if policymakers will give any indication on the timing of a rate hike.

On Friday, the Fed mistakenly published a staff projection pointing to a quarter point rate hike later this year.

The dollar has been boosted in recent weeks by mounting expectations that the U.S. central bank could raise rates as soon as September if the economy continues to improve as expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.62% at 96.74, the lowest level since July 14.

EUR/USD climbed 0.73% to two-week highs of 1.1063 after the Ifo research institute said its business climate index rose to 108.0 from a reading of 107.5 in June, compared to expectations of 107.2.

Meanwhile, formal talks between Greece and its international creditors on a new bailout package were expected to get underway later Monday.

Talks had been expected to start on Friday but were delayed by logistical issues, including security matters.

A new agreement must be reached before August 20 when Greece must repay more than €3 billion to the European Central Bank.

The pound was steady, with GBP/USD at 1.5523.

Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY dropping 0.50% to 123.18 and with USD/CHF declining 0.49% to 0.9580.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.13% at 0.7289 and with NZD/USD gaining 0.56% to 0.6613.

Meanwhile, USD/CAD slipped 0.16% to trade at 1.3023.

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