US Dollar Mixed At The Start Of The New Trading Week
Washington (Jun 22) The dollar is turning in a mixed performance against its major competitors Monday, but is little changed overall. The US currency is gaining ground against both the Japanese Yen and the pound sterling, but is slightly weaker against the Euro.
US economic data was on the light side this morning, but the existing home sales report came in better than expected. Investors can look forward to a number of important reports later this week, including durable goods orders tomorrow and GDP on Wednesday.
Existing home sales in the US increased by more than expected in the month of May, according to a report released by the National Association of Realtors on Monday, with sales jumping to their highest level in nearly six years.
The report said existing home sales surged up by 5.1% to an annual rate of 5.35 million in May from an upwardly revised 5.09 million in April. Economists had expected existing home sales to climb to an annual rate of 5.25 million from the 5.04 million originally reported for the previous month.
Investors are optimistic that an agreement between Greece and its creditors is in sight after Athens submitted a revised economic reform proposal early Monday to which the Eurogroup has responded positively.
Eurozone finance ministers held an emergency meeting in Brussels on Monday, which ended without an agreement. However, another meeting has been scheduled for Thursday.
The new proposal submitted by Greece is seen a 'positive step' in the path to reaching a deal with creditors and work will start immediately with the aim of reaching a final agreement later in the week, Eurogroup President Jeroen Dijsselbloem said in the press conference following the meeting.
Dijsselbloem welcomed the proposals and said they were received only Monday morning, which left little time for the institutions to go through them in detail to give an in-depth assessment. Media reports earlier on Monday said that Greek officials had submitted wrong proposals late Sunday.
The dollar rose to an early high of USD1.1311 against the Euro Monday, but has since retreated to around USD1.1360.
The buck began Monday's session around USD1.5910 against the pound sterling, but has since climbed to around USD1.5825.
The Bank of Japan maintained its upbeat view on the economy saying the moderate recovery is expected to continue.
In its monthly report released Monday, the BoJ said exports are expected to increase moderately, albeit with some fluctuations, mainly against the background of the recovery in overseas economies.
Further, it said private consumption is set to remain resilient with the employment and income situation continuing to improve steadily. Housing investment is projected to pick up.
Reflecting these developments in demand both at home and abroad, industrial production is expected to increase moderately, albeit with some fluctuations.
The greenback traded around Y122.700 against the Japanese Yen early Monday, but has since risen to around Y123.325.
Source: NewsEdge
