Investing.com - The dollar traded lower against most major currencies on Monday after U.S. pending home sales disappointed investors, while fresh Ebola fears weighed on the greenback as well.
In U.S. trading on Monday, EUR/USD was up 0.31% at 1.2709 .
The National Association of Realtors reported earlier its pending home sales index rose by 0.3% last month, disappointing expectations for a 0.5% gain. Pending home sales in August fell by 1%.
Year-on-year, pending home sales rose 1.0% in September, missing expectations for a 2.2% reading following a 4.1% decline in August.
Moderating price growth and sustained inventory levels are keeping conditions favorable for buyers.
“Housing supply for existing homes was up in September 6% from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” said Lawrence Yun, the association's chief economist.
The numbers weakened the dollar by clouding expectations as to when the Federal Reserve may hike benchmark interest rates.
While the U.S. central bank is seen closing its monthly bond-buying stimulus program likely at a policy meeting ending Wednesday, spotty U.S. data have made it unclear when rate hikes might begin in 2015.
On Friday, the Census Bureau reported that U.S. new home sales rose 0.2% in September to 467,000 units, missing expectations for an increase to 470,000 units.
The August figure was downwardly revised to a 15.3% climb to 466,000 units from a previously estimated 18.0% jump to 504,000 units.
Still, the dollar didn't plunge, as a longer-range view of economic indicators still points to a sustained U.S. recovery, including in the housing sector.
Earlier last week, the National Association of Realtors reported that U.S. existing home sales increased 2.4% to a 5.17 million units last month from 5.05 million in August. Analysts had expected existing home sales to rise 1% to 5.10 million units in September.
Ebola fears pressured the greenback lower as well.
The state of New Jersey forced a quarantine on a nurse working with Doctors Without Borders who recently returned to the U.S., and while she was later released, concerns of civil rights issues surrounding the case unnerved markets.
Also, a five-year-old boy in New York City recently in from the West African nation of Guinea was reportedly undergoing testing for the deadly virus.
Meanwhile in Europe, the single currency saw support after results of stress tests on Europe’s largest banks revealed that most of the region’s top lenders have enough capital to survive another financial crisis.
The European Central Bank announced the results of yearlong tests to assess the finances of 150 banks on Sunday.
A total of 25 banks were found to have capital shortfalls, but most have already taken steps to resolve these issues, the ECB said.
Elsewhere in Europe, German research institute Ifo reported earlier that its business climate index slid to 103.2 in October from 104.7 in September.
This month's reading was the lowest level since December 2012 and missed forecasts for a 104.3 reading, which capped the euro's gains in earlier trading though Fed uncertainty brought the single currency back higher in the afternoon.
German firms reported that they are gloomier about current conditions and future prospects than last month, fueling fears for a disappointing fourth-quarter growth rate.
Germany's economy grew by 0.7% in the first quarter of the year, but then contracted by 0.2% in the three months to June. The country is to release data on third quarter growth next month.
The dollar was down against the yen, with USD/JPY down 0.40% at 107.71, and down against the Swiss franc, with USD/CHF down 0.35% at 0.9486.
The greenback was down against the pound, with GBP/USD up 0.28% at 1.6128.
The pound continued to enjoy support from U.K. growth data.
The Office for National Statistics reported last week that the U.K.'s preliminary gross domestic product rose 0.7% in the third quarter, in line with expectations, after a 0.9% increase in the three months to June.
Year-on-year, Britain's GDP rose at an annualized rate of 3.0% in the last quarter, also in line with expectations, down from a 3.2% growth rate in the second quarter.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.05% at 1.1235, AUD/USD up 0.15% at 0.8805 and NZD/USD up 0.51% at 0.7895.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% at 85.57.
On Tuesday, the U.S. is to release data on durable goods orders and a report by the Conference Board on consumer confidence.