Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Forex - Dollar Trickles Lower Ahead of US-EU Meeting

Published 2018-07-25, 12:58 p/m
© Reuters. The dollar trickled lower against rivals Wednesday
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CAD
-
DX
-

Investing.com - The dollar trickled lower against rivals Wednesday as data showed continued weakness in the U.S. housing market ahead of a meeting between the United States and European Union this afternoon.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.07% to 94.32.

Sales of new U.S. single-family homes fell to an eight-month low in June, raising concerns that the housing market recovery was beginning to wane.

The Commerce Department said Wednesday new home sales fell 5.3% to a seasonally adjusted annual rate of 631,000 units last month.

That was a faster pace of decline than economists had anticipated, but analysts downplayed the weak data, citing the longer-term trend of new home sales remained solid, supported by job growth and easing credit conditions.

"We continue to believe the housing market recovery will continue to unfold over the next 12-18 months at a moderate pace, as we expect demand to improve, driven by job growth and modestly easing credit conditions," JPMorgan said Tuesday.

Elsewhere, EUR/USD fell 0.07% to $1.1680 despite bullish German business survey data as focus shifted to President Trump's meeting with European Commission President Jean-Claude Juncker this afternoon to discuss trade.

Heading into the discussions, both sides have made threats and demands. The U.S. has threatened to increase its 2.5% levy on imported cars to 25%, while the EU has threatened to introduce tariffs on $20 billion worth of US goods if the United States follows through with additional tariffs on imported cars.

GBP/USD rose 0.05% to $1.3150 as data showing mortgage approvals hit a nine-month high was offset somewhat by continued Brexit-related angst.

USD/CAD fell 0.40% to C$1.3102 as pair came under pressure as rising oil prices supported the loonie.

USD/JPY fell 0.19% to Y110.98.

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.