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Dollar slips lower after U.S. durable goods data

Published 10/27/2015, 08:39 AM
Dollar loses ground vs. other majors on weak U.S. data
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Investing.com - The dollar slipped lower against the other major currencies on Tuesday, after the release of weak data on U.S. durable goods orders and as investors awaited the Federal Reserve's upcoming policy meeting.

The dollar was lower against the yen, with USD/JPY sliding 0.71% to 120.23.

The U.S. Commerce Department reported that total durable goods orders decreased by 1.2% last month, matching forecasts. Orders for durable goods in August were revised to a drop of 3.0% from a previously reported decline of 2.3%.

Core durable goods orders, which exclude volatile transportation items, fell 0.4% in September, compared to expectations for an increase of 0.1%. Core durable goods orders slumped 0.9% in August.

Investors were looking ahead to Wednesday’s monetary policy announcement by the Fed for fresh indications on the timing of an initial rate hike.

EUR/USD edged up 0.11% to trade at 1.1067

Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi signaled that further monetary easing is likely later this year.

Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.5346 and with USD/CHF at 0.9830.

Sterling weakened after the U.K. Office for National Statistics said gross domestic product expanded by 0.5% in the third quarter, missing forecasts for growth of 0.6%. The U.K.’s economy grew by 0.7% in the three months to June.

Year-over-year, U.K. economic growth expanded 2.3% in the third quarter, below expectations for 2.4%. The U.K. economy grew at an annualized rate of 2.4% in the second quarter.

The Australian dollars was little changed, with AUD/USD at 0.7244, while NZD/USD added 0.12% to 0.6796.

USD/CAD rose 0.22% to trade at 1.3184.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 96.77, pulling away from Friday's two-month highs of 97.30.

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