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Forex - Dollar Subdued as Weak Durable Goods Orders Weigh

Published 11/21/2018, 01:52 PM
Updated 11/21/2018, 02:02 PM
© Reuters.
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Investing.com - The dollar was subdued against its rivals Wednesday as negative U.S. economic data did little to lift sentiment.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.15% to 96.57.

The U.S. Department of Labor reported Wednesday that initial jobless claims rose by 3,000 to a seasonally adjusted 224,000 last week, missing economists’ forecast for a drop to 215,000.

Elsewhere, core durable goods orders rose 0.1% last month, the Commerce Department said on Wednesday. That was below consensus estimates for a 0.4% rise.

Analysts attributed the fall in durable goods orders on a pullback in business spending amid concerns about the impact of U.S. tariffs on Chinese imports.

"October orders for business equipment suggest the trade wars or stock market turmoil is dampening the confidence of companies, and business investment will not be a significant driver of GDP growth in the fourth quarter," MUFG said in a note to clients.

The euro, meanwhile, gave up gains against the dollar even as reports suggested that Italy may be open to tweaking its draft budget for 2019, potentially easing a rift with the European Union.

The reports come as the European Commission gears up to take measures on Wednesday toward disciplining Italy over its draft fiscal plan.

EUR/USD rose 0.11% to $1.1384, while GBP/USD fell 0.11% to $1.2775.

USD/CAD fell 0.38% to C$1.3225 as oil prices jumped, supporting the Canadian dollar, despite the Energy Information Agency reporting a larger-than-expected build in U.S. crude supplies.

Elsewhere, the risk-sensitive USD/JPY rose 0.27% to Y113.08 as Wall Street rebounded from a two-day slump.

-- Reuters contributed to this report.

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