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Dollar rises against other majors ahead of U.S. data

Published 06/03/2015, 06:31 AM
© Reuters.  Dollar gains ground vs. rivals, eyes on U.S. data
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Investing.com - The dollar rose against a basket of other major currencies on Wednesday, as markets eyed the release of a series of U.S. economic reports for further indications on the outlook for second quarter growth.

USD/JPY rose 0.25% to 124.44, re-approaching Tuesday's 12-year highs of 125.05.

The dollar came under broad selling pressure after data on Tuesday showed that U.S. factory orders unexpectedly fell in April sparked fears the growth could struggle to pick up in the current quarter after a weak first quarter.

EUR/USD slipped 0.27% to 1.1121 after rising to a one-week peak of 1.1194 on Tuesday.

Data earlier showed that euro zone retail sales rebounded 0.7% in April and were up 2.2% from a year earlier.

Another report showed that the region’s unemployment rate fell to 11.1% in April from 11.2% in March.

The single currency remained mildy supported by hopes that Greece will soon reach an agreement with its international lenders on a cash-for-reforms deal.

On Tuesday, Greece's creditors drafted an agreement to present to Athens in a bid to make a breakthrough in protracted negotiations and release financial aid before the country runs out of money.

Greece is due to make a €305 million payment to the International Monetary Fund on Friday but has warned that it will be unable to make the repayment if a deal is not reached by then.

The pound and the Swiss franc were also lower, with GBP/USD down 0.43% to 1.5278 and with USD/CHF rose 0.28% to 0.9354.

Sterling came under pressure after the Markit services purchasing managers' index slowed to 56.5 last month from 59.5 in April. It was its lowest level since December. Economists had expected the index to tick down to 59.2.

The Australian dollar was steady, with AUD/USD at 0.7774, while NZD/USD declined 0.56% to 0.7140.

The Aussie strengthened earlier, after the Australian Bureau of Statistics said gross domestic product rose 0.9% in the first quarter, beating expectations for a growth rate of 0.7% and after a 0.5% rise in the last three months of 2014.

Year-on-year, Australia's GDP rose 2.3% in the three months to March, compared to expectations for an increase of 2.1%, following a 2.5% growth rate in the last quarter of 2014.

USD/CAD added 0.35% to trade at 1.2447.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.23% at 96.22, off Tuesday's one-week low of 95.71.

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