(MENAFN– ecpulse)
Dollar corrected slightly lower in Europe Tuesday, losing ground against euro and yen, as investors await cues from today’s key U.S. releases followed by economic growth on Thursday with no major events out of the Eurozone.
In the U.S., recent numbers have been solid, but the markets have mixed feelings about Tuesday`s data. Core Durable Goods Orders is expected to dip to 0.4 percent in July. While the estimate for Durable Goods Orders stands at 7.0 percent%, and some analysts are predicting a much higher gain in July.
The dollar index, which sets the U.S. currency against a basket of six of the most heavily traded currencies on a weighted basis, is currently trading at 82.54 lower compared with opening level at 82.64.
The greenback has risen against major currencies in the previous two sessions, buoyed by the
Federal Reserve Chair Janet Yellen’s speech in the Jackson Hole, Wyoming conference Friday.
Yellen’s speech suggested the Fed is inching toward interest rate hikes because of faster-than-expected improvement in employment.
The Japanese Yen outperformed in European trades, extending gains into a second straight sessions, trading at ¥103.879 after opening at ¥104.044. The USDJPY pair so far dropped to an intraday low of ¥103.744.
Euro was mixed on Tuesday, with weak data showing German business sentiment sagging for the fourth month and news the French government resigned following a row over fiscal policy, added to the bearishness.
The single currency was trading at $1.31944 after opening at $1.31912. The EURUSD pair so far hit intraday high at $1.32141 and low at $1.31773.
Investors await Eurozone inflation data on Friday, with expectations annual inflation have slowed to 0.3 percent in August from 0.4 percent in July. Well below the ECB`s danger zone of 1.0 percent and its target of just under 2.0 percent.
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