Investing.com – The dollar retreated from session highs against a basket of major currencies amid mostly negative economic data but losses were limited by easing fears of a global trade war and sterling weakness.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.34% 88.94.
The dollar hit a session high of 88.93 before giving up some of its gains as upbeat housing data was offset by a slump in regional manufacturing and consumer confidence data.
The Conference Board’s consumer confidence gauge fell to a reading of 127.7 from 130.0 the previous month, missing economists’ forecast for a reading of 131.
The Richmond Fed manufacturing index slumped to 15 in March from its February reading of 28, undershooting economists’ estimates for a reading of 23.
The S&P/Case-Shiller national index jumped a seasonally adjusted 0.5% in the three-month period ending in January, and was up 6.4% compared to a year before. The 20-city index home price index rose a seasonally adjusted 0.8% for the month, and 6.4% for the year.
Wells Fargo said home price appreciation “continued to grow at a breakneck pace” amid easing affordability concerns as the gap between the home price index and wages has narrowed from 3.3% in February 2017 to just 1.3% on Tuesday.
Weakness in both sterling and euro supported the rise in the greenback as the single currency came under pressure following weaker-than-expected Spanish inflation data.
EUR/USD fell 0.25% to $1.2412, while GBP/USD fell 0.45 % to $1.4164.
USD/JPY rose 0.34% as easing concerns over a potential U.S.-China trade war moderated demand for safe-haven yen.
USD/CAD rose 0.15% to C$1.2862 as weakness in oil prices continued to weigh on the loonie.