🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Forex - Dollar Higher on Positive Economic Data; EUR/USD, GBP/USD Slump

Published 04/17/2018, 12:55 PM
© Reuters.
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CAD
-
DX
-

Investing.com – The dollar rebounded against a basket of major currencies from a slump in the previous day as positive U.S. economic data lifted sentiment.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.21% to 89.33.

The Commerce Department said Tuesday U.S. homebuilding rose 1.9% to a seasonally adjusted annual rate of 1.319 million units in March, beating economists’ estimates for an increase to 1.270 million.

The report also highlighted a sharp 2.5% rise in building permits to a rate of 1.354 million units.

Industrial production in March, meanwhile, rose 0.5%, topping economists’ forecast for a 0.3% rise.

The uptick in housing starts was said to be transitory as much of the rise was on the back of an increase in the construction of multi-family homes – a category which not only contributes less to GDP but also is more volatile than the construction activity of single-family homes.

Pantheon said single-family homes accounts for more than two thirds of housing construction so “short-term swings in the multi-family numbers can't overwhelm the trend.” Construction activity tracks sales, so a sustained rise in housing starts in the near-term is unlikely, the research firm added.

Bullish remarks from San Francisco Federal Reserve Bank President John Williams also helped lift sentiment on the greenback as the Fed official said the U.S. central bank needed to continue on its gradual rate-hike path as inflation was closing in on the Fed’s 2% inflation target.

Also supporting a rebound in the dollar was sterling and euro weakness.

EUR/USD fell 0.26% to $1.2348 after weak economic data weighed on sentiment.

GBP/USD fell 0.33% to $1.4291 as traders appeared to take profit on the pair after it hit a new intraday high for the year of $1.4377.

USD/JPY fell 0.11% as the ongoing uncertainty surrounding the future of Japan Prime Minister Shinzo Abe attracted yen demand.

USD/CAD fell 0.26% to C$1.2535 as stronger Canada manufacturing data supported the loonie.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.