Investing.com - The dollar rose against most major global currencies on Wednesday after U.S. home price data beat expectations, outshining weaker-than-expected consumer confidence figures.
In Asian trading on Wednesday, EUR/USD was down 0.06% at 1.2557.
Earlier in the U.S., consumer confidence plunged in August to its lowest levels in 9 months.
The Conference Board said earlier that it consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
However, data from the U.S. housing sector, which threw the country into recession and continues to weigh on its recovery, came in better than expected.
The Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The housing figures boosted spirits among investors eager to see upward revisions to the second quarter's 1.5% GDP growth figure due out later Wednesday.
More sustained growth rates would put to rest for now talk the Federal Reserve will stimulate the economy with a new round of quantitative easing, which sees the Fed buying assets held by banks, pumping the economy full of liquidity to encourage investing and hiring, weakening the dollar in the process.
However, the euro and other higher-yielding currencies saw support on news that European Central Bank President Mario Draghi canceled his trip to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming.
Draghi's decision fueled talk European Central Bank may soon participate in intervening in sovereign debt markets to lower borrowing costs.
Earlier, borrowing costs in Italy dropped at an auction of two-year government bonds.
Italy’s Treasury sold EUR3.0 billion of bonds maturing in May 2014, the top end of the targeted range, at an average yield of 3.06%, down from 4.86% at a similar auction last month.
Meanwhile in Spain, the Treasury sold EUR1.67 billion in three-month bills at an average interest rate of 0.95%, down from 2.43% about a month ago.
It sold EUR1.93 billion in six-month bills yielding 2.03% percent, down from 3.69% during a previous auction.
Demand was strong.
Meanwhile, markets were still anticipating Fed Chairman Ben Bernanke's speech at Jackson Hole later this week.
Bernanke has announced policy measures at previous Jackson Hole meetings and expectations he could follow suit this week tempered the dollar's gains.
Fed officials have said they cannot rule out the need for a third round of quantitative easing, or bond purchases from banks that weaken the dollar with the aim of kick-starting recovery.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.02% at 1.5816.
The dollar was up against the yen, with USD/JPY trading up 0.09% at 78.58, and up against the Swiss franc, with USD/CHF trading up 0.07% at 0.9565.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.01% at 0.9882, AUD/USD down 0.11% at 1.0365 and NZD/USD down 0.01% at 0.8046.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 81.42.
Later Wednesday, the U.S. will release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.
In Asian trading on Wednesday, EUR/USD was down 0.06% at 1.2557.
Earlier in the U.S., consumer confidence plunged in August to its lowest levels in 9 months.
The Conference Board said earlier that it consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
However, data from the U.S. housing sector, which threw the country into recession and continues to weigh on its recovery, came in better than expected.
The Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The housing figures boosted spirits among investors eager to see upward revisions to the second quarter's 1.5% GDP growth figure due out later Wednesday.
More sustained growth rates would put to rest for now talk the Federal Reserve will stimulate the economy with a new round of quantitative easing, which sees the Fed buying assets held by banks, pumping the economy full of liquidity to encourage investing and hiring, weakening the dollar in the process.
However, the euro and other higher-yielding currencies saw support on news that European Central Bank President Mario Draghi canceled his trip to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming.
Draghi's decision fueled talk European Central Bank may soon participate in intervening in sovereign debt markets to lower borrowing costs.
Earlier, borrowing costs in Italy dropped at an auction of two-year government bonds.
Italy’s Treasury sold EUR3.0 billion of bonds maturing in May 2014, the top end of the targeted range, at an average yield of 3.06%, down from 4.86% at a similar auction last month.
Meanwhile in Spain, the Treasury sold EUR1.67 billion in three-month bills at an average interest rate of 0.95%, down from 2.43% about a month ago.
It sold EUR1.93 billion in six-month bills yielding 2.03% percent, down from 3.69% during a previous auction.
Demand was strong.
Meanwhile, markets were still anticipating Fed Chairman Ben Bernanke's speech at Jackson Hole later this week.
Bernanke has announced policy measures at previous Jackson Hole meetings and expectations he could follow suit this week tempered the dollar's gains.
Fed officials have said they cannot rule out the need for a third round of quantitative easing, or bond purchases from banks that weaken the dollar with the aim of kick-starting recovery.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.02% at 1.5816.
The dollar was up against the yen, with USD/JPY trading up 0.09% at 78.58, and up against the Swiss franc, with USD/CHF trading up 0.07% at 0.9565.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.01% at 0.9882, AUD/USD down 0.11% at 1.0365 and NZD/USD down 0.01% at 0.8046.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 81.42.
Later Wednesday, the U.S. will release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.