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Dollar turns broadly higher as U.S. data supports

Published 05/27/2014, 10:54 AM
Updated 05/27/2014, 10:54 AM
Dollar strengthens broadly after upbeat U.S. data

Investing.com - The dollar turned broadly higher against the other major currencies on Tuesday, as the release of strong U.S. data fuelled further optimism over the strength of the country's economic recovery, supporting demand for the greenback.

The dollar was higher against the euro, with EUR/USD down 0.21% to 1.3618.

In a report, the Conference Board said its index of consumer confidence rose to 83.0 this month from a reading of 81.7 in April, whose figure was revised down from a previously reported 82.3.

The data came after Standard & Poor’s with Case-Shiller said its house price index rose at an annualized rate of 12.4% in March from a year earlier, compared to forecasts for a gain of 11.8% and following a rise of 12.9% in February.

Data also showed that U.S. core durable goods orders, which exclude transportation items, rose 0.1% last month, below expectations for a 0.3% increase. Core durable goods orders in March were revised up to a 2.9% gain from a previously estimated 2.4% rise.

U.S. durable goods orders rose 0.8% in April, confounding expectations for a 0.5% fall, after a 3.6% increase in March, whose figure was revised up from a previously estimated 2.9% rise.

Meanwhile, sentiment on the euro remained fragile after European Central Bank President Mario Draghi said the bank will do everything feasible for the euro zone economy within its mandate, fuelling fresh expectations for additional easing measures.

On Monday, Mario Draghi said the ECB is ready to act should it see signs of a negative inflation spiral taking hold, and indicated that the bank is weighing a wide range of policy options, including interest rate cuts, and liquidity injections or broad-based asset purchases to help shore up the fragile recovery in the euro area.

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Draghi was speaking at the new ECB annual conference in Sintra, Portugal.

The pound was lower against the dollar, with GBP/USD sliding 0.27% to 1.6797.

Industry data earlier showed that U.K. mortgage approvals rose by 42,200 last month, compared to expectations for a 45,200 increase. Mortgage approvals in March were revised down to a 45,000 rise from a previously estimated 45,900 increase.

The dollar was higher against the yen and the Swiss franc, with USD/JPY adding 0.16% to 102.09 and with USD/CHF rising 0.31% to 0.8974.

Earlier in the day, official data showed that Switzerland's trade surplus widened to 2.425 billion Swiss francs last month, from 1.996 billion Swiss francs in March, whose figure was revised down from a previously estimated surplus of 2.050 billion Swiss francs.

Analysts had expected the trade surplus to widen to 2.052 billion Swiss francs in April.

A separate report showed that the number of employed people in Switzerland remained unchanged at 4.190 million in the first quarter, confounding expectations for a rise to 4.210 million.

The greenback was steady to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD inching up 0.05% to 0.9243, NZD/USD slipping 0.16% to 0.8537 and USD/CAD edging 0.08% higher to 1.0867.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.17% to 80.48.

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