Dollar Losing Ground As The Week Draws To A Close

The dollar is losing ground against its major European rivals Friday afternoon, but is nearly flat in comparison to the Japanese Yen. It was another light day on the U.S. economic front. Investors have also been monitoring comments from several Fed officials at the end of the trading week.

New home sales in the U.S. rebounded in May after a sharp pullback in the previous month, according to a report released by the Commerce Department on Friday. The Commerce Department said new home sales climbed by 2.9 percent to an annual rate of 610,000 in May from the upwardly revised April rate of 593,000.

Economists had expected new home sales to jump by 5.4 percent to a rate of 600,000 from the 569,000 originally reported for the previous month.

The dollar has dropped to around $1.12 against the Euro Friday afternoon, its lowest level since Monday. The U.S. currency began the day around $1.1145.

Eurozone private sector growth moderated in June from a six-year high due to a slowdown in services activity, yet the economy enjoyed the best quarter for six years, the flash data from the Purchasing Managers’ survey by IHS Markit showed Friday.

The composite output index fell to 55.7 in June from a joint six-year high of 56.8 in May. The score was forecast to drop moderately to 56.6.

Germany’s private sector continued to expand in June but the pace of growth was the weakest since February, flash survey data from IHS Markit showed Friday. The composite output index fell to 56.1 in June from 57.4 in May.

The total value of new orders received by the German construction industry increased in April, data from Destatis showed Friday. The seasonally, working-day and price-adjusted orders in construction rose 0.9 percent month-over-month in April.

Germany’s real wages grew at a slower pace in the three months ended March, figures from Destatis showed Thursday. Real wages rose 0.6 percent year-over-year in the first quarter, following a 1.1 percent increase in the previous quarter.

The French private sector grew at the weakest pace in five months in June, flash survey data from IHS Markit showed Friday. The composite output index dropped to 55.3 in June from May’s six-year peak of 56.9.

The French economy expanded more than previously estimated in the first quarter, detailed report from the statistical office Insee showed Friday. Gross domestic product grew 0.5 percent sequentially, revised up from 0.4 percent estimated previously. The pace of growth thus matched the rate seen in the fourth quarter of 2016.

The buck slipped to a low of $1.2744 against the pound sterling Friday, but has since bounced back to around $1.2725.

British households perceived that the value of their home increased in June, albeit at a slower rate than in the previous month, survey figures from IHS Markit and Knight Frank showed Friday. The Knight Frank/Markit House Price Sentiment Index, or HPSI, declined to 53.3 in June. Any figure over 50 indicates that prices are rising.

The greenback reached an early high of Y111.431 against the Japanese Yen Friday morning, but has since retreated to around Y111.280, nearly unchanged for the session.

The material has been provided by InstaForex Company – www.instaforex.com

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