US Dollar Little Changed Despite Strong Housing Data
Washington (Oct 20) The dollar is turning in a mixed performance against its major competitors Monday afternoon, despite the release of some better than expected housing data. Disappointing GDP data from China has soured the mood among investors at the start of the trading week. Investors are left to ponder what the continued struggles of the world's second largest economy will lead the central banks to do in response.
The European Central Bank will hold its monetary policy meeting later this week in Malta . ECB President has indicated repeatedly that he is willing to go forward with further stimulus measures if they are deemed necessary.
Meanwhile, the Federal Reserve is also keeping an eye on the data coming out of China as it continues to debate the timing of interest rate hikes. Many experts are of the opinion that the Fed may have to hold off until the start of the new year to begin hiking rates.
Homebuilder confidence in the US unexpectedly improved in the month of October, according to a report released by the National Association of Home Builders on Monday. The report said the NAHB/ Wells Fargo Housing Market Index climbed to 64 in October from a downwardly revised 61 in September.
The increase came as a surprise to economists, who had expected the index to come in unchanged at the 62 originally reported for the previous month.
The dollar climbed to a 1-week high of USD1.1305 against the Euro Monday morning, but has since eased back to around USD1.1325 .
Eurozone construction output decreased in August after rebounding in the previous month, data from Eurostat showed Monday. Construction output fell a seasonally adjusted 0.2% month-over-month in August, reversing a 0.4% increase in July, which was revised up from a 0.1% rise.
The buck slipped to an early low of USD1.5496 against the pound sterling Monday, but has since bounced back to around USD1.5465 .
The Bank of Japan retained its economic assessment for all nine regions on Monday as regions had been recovering moderately or recovering.
Compared with the last assessment in July, all regions reported that their assessments regarding the pace of economic improvement had remained unchanged, the BoJ said in its quarterly Regional Economic Report.
The central bank said all regions had been recovering moderately or recovering, primarily as, on the domestic demand side, business fixed investment had been on a moderate increasing trend and private consumption had been resilient against the background of steady improvement in the employment and income situation.
Nonetheless, exports and production had been affected mainly by the slowdown in emerging economies, the bank said.
The greenback has been hovering around Y119.500 against the Japanese Yen for most of Monday's session, nearly flat on the day.
Source: AllianceNews
