The dollar started the week on a higher note on Monday despite the release of bearish economic data. The greenback fell in the previous week as investors were doubtful of another rate hike this year, Federal Reserve Chair Yellen is scheduled to speak on Tuesday in London, it is expected that Yellen will shed some light on recent downbeat inflation data. Furthermore, economic data released in the US on Monday showed that investor confidence has declined as of late. Core Durable goods order showed a figure that was less than expected, showing a reading of 0.1 percent contrary to market expectation of a rise by 0.5 percent. Despite downbeat economic data the dollar index rose by 0.17 percent to trade at 97.41 at the close.
Meanwhile benchmarks in the United State ended Monday’s session in mixed territories as both Dow Jones Industrial index and S&P 500 traded higher while Nasdaq 100 edged lower. Dow Jones Industrial Average was up 14.79, or 0.07 percent to trade at 21,409.55. Meanwhile the S&P 500 gained 0.77 point or 0.03 percent to settle at 2,439.07. On the other hand, Nasdaq 100 index lost 25.52 point or 0.44 percent to 5,777.59.
Elsewhere in the United Kingdom, The sterling pound edged higher amid report that British Prime Minister Theresa May is finalized a deal to secure the backing of the Democratic Unionist Party. GBP/USD traded above 1.2720 levels late in the session.
Over in Europe, the euro lost some of the gains made in the previous session versus its dollar counterpart as ECB President Mario Draghi’s speech did not have any significant impact in the session. The support from positive economic data in Germany was not enough to lift the currency, as The Ifo business climate index rose by a larger than expected margin to show a reading of 115.1 points. EUR/USD fell to trade under 1.1190 levels.
In Japan, safe haven currency Japanese Yen continued to lose ground versus the greenback, as the dollar saw support ahead of the upcoming Yellen speech on Tuesday. USD/JPY rose by 0.52 percent to settle at 111.85 at the close.
Commodity dependent currencies, the Aussie dollar and New Zealand dollar continued their bullish trend versus the greenback gained, as both currencies saw support from the rise versus the greenback.
In Canada, Oil dependent “loonie dollar” gained some lost ground versus the dollar to shrug off the some losses in the previous session after a government report showed downbeat inflation data. However, the loonie saw support from rising oil prices to end the session higher against the greenback. The USD/CAD fell by 0.23 percent to end the session at 1.3243.
Finally, this week will be a busy week in the US as the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index will be published. Furthermore, in Europe, ECB president Mario Draghi will speak Tuesday. While Federal reserve Chair Yellen is scheduled to speak on Tuesday.
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