US Dollar Slightly Higher Despite Dip In Existing Home Sales
Washington (Nov 23) The dollar is trading slightly higher against all of its major rivals Monday afternoon. Global economic data has been light at the start of the new trading week. US existing home sales came in slightly weaker than anticipated, while Eurozone private sector data showed continued improvement.
Investors appear to be largely convinced that the Federal Reserve will announce an interest rate hike at its December meeting. Meanwhile, many believe that the European Central Bank will announce further stimulus measures at its next meeting.
San Francisco Fed President John Williams said on Saturday that there is a "strong case'' for raising interest rates. The recent "data have been overall encouraging, especially on the labor market".
The president of the St. Louis Fed, James Bullard , said on Friday that US monetary policy should be more data-dependent and the central bank must be ready to be flexible.
New York Fed president William Dudley also said on Friday that a decision to raise rates in December will be data-dependent.
After reporting a sharp jump in US existing home sales in the previous month, the National Association of Realtors released a report on Monday showing that existing home sales pulled back by a little more than expected in October.
NAR said existing home sales fell 3.4% to an annual rate of 5.36 million in October after surging up 4.7% to a rate of 5.55 million in September. Economists had expected sales to drop to a rate of 5.40 million.
The dollar rose to a high of USD1.0590 against the Euro Monday, but has since eased back to around USD1.0625 .
Euro area private sector expanded at the fastest pace in four-and-a-half years in November, underpinned by continued improvement in services. Germany grew at the fastest pace in three months, while France experienced a slowdown in growth.
The composite output index rose to a 54-month high of 54.4 in November from 53.9 in October, flash survey data from Markit showed Monday. The reading was also above the expected score of 54.
Germany's private sector grew at the fastest pace in three months in November, flash data from Markit showed Monday. The composite output index rose to 54.9 in November from 54.2 in October.
The French private sector grew at the slowest pace in three months in November, flash data from Markit showed Monday. The composite output index dropped to a 3-month low of 51.3 from 52.6 in October.
The buck slipped to a low of USD1.5189 against the Pound sterling Monday, but has since rebounded to around USD1.5120 .
The greenback around the Y123.200 level against the Japanese Yen early Monday, but has since slipped to around Y122.850 .