Investing.com - The dollar gave back earlier safe-haven gains
stemming from soft Chinese housing data and dipped against most
major currencies on Monday as rising U.S. stocks and talk of
international aid for the Ukraine enticed investors out of
safe-harbor greenback positions.
In U.S. trading on Monday, EUR/USD was down 0.02% at 1.3737.
Data released earlier revealed that home prices in major Chinese
cities rose 9.6% in January, short of December's 9.9% growth.
Growth fell for the first time in 14 months in January, which
fueled already growing fears that the world's second largest
economy is slowing as the government tries to deal with bad loans
and weak lenders, which sparked safe-haven demand for the greenback
The greenback fell in later trading after a U.S. stock-market
rally enticed investors out of the greenback, while talk the
Ukraine may receive international aid and avoid default also sent
the U.S. currency falling as investors took up risk-on trading
Meanwhile in Europe, German research institute Ifo said its
business climate index came in at 111.3 in February, the highest
level since mid-2011, up from 110.6 in January. Analysts had
expected an unchanged reading.
German firms are benefitting from high export demand the report
said, though ongoing emerging-market volatility concerns clouded
The future expectations component of the index ticked down to
108.3 from 108.9 in January, though it did beat expectations for a
decline to 108.2.
A separate report showed that the annual rate of euro zone
inflation came in at 0.8% in January, unchanged from the previous
month and slightly higher than the preliminary estimate for 0.7%.
Consumer prices were down 1.1% from a month earlier, in line with
The dollar was down against the yen, with USD/JPY down 0.5% at
102.45, and up against the Swiss franc, with USD/CHF up 0.06% at
The greenback was down against the pound, with GBP/USD up 0.28%
The dollar was down against its cousins in Canada, Australia and
New Zealand, with USD/CAD down 0.42% at 1.1063, AUD/USD up 0.61% at
0.9033 and NZD/USD up 0.53% at 0.8325.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.07% at
On Tuesday, the U.S. is to release data on consumer confidence
and a private sector report on house price inflation.
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