Dollar hits session highs vs. euro after U.S. data

A A A - The dollar rose to session highs against the euro on Tuesday and gained ground against the other major currencies after a series of better-than-forecast U.S. data indicated that the economic recovery is gaining traction.

During U.S. morning trade, the dollar hit session highs against the euro, with EUR/USD down 0.32% to 1.3078.

U.S. consumer confidence rose to highest level since January 2008 this month, data on Tuesday showed, while another report showed that U.S. new home sales rose to an almost five year high May.

The Conference Board said its index of U.S. consumer confidence rose to 81.4 from 74.3 in May, well above expectations for a reading of 75.4.

The Commerce Department said U.S. new home sales rose by 2.1% to a seasonally adjusted 476,000 units in May, the highest level since July 2008, beating expectations for an increase of 1.3% to 462,000.

In a separate report, the Commerce Department said U.S. orders for long lasting manufactured goods rose 0.7% last month, defying expectations for a 0.1% decline.

Core durable goods orders, which exclude volatile transportations items, were up 3.6% in May, outstripping expectations for a 3% gain.

The greenback had been broadly lower earlier in the session after officials from the Federal Reserve downplayed market concerns over prospects of an end to the central bank's easing policies on Monday.

The dollar erased losses against the yen, with USD/JPY rising 0.14% to 97.87, up from session lows of 96.97.

The greenback hit session highs against the pound and the Swiss franc, with GBP/USD down 0.20% to 1.5404 and USD/CHF climbing 0.68% to 0.9395.

The greenback was also stronger against its Australian, New Zealand and Canadian counterparts, with AUD/USD slipping 0.09% to 0.9238, NZD/USD falling 0.37% to 0.7721 and USD/CAD rising 0.16% to 1.0515.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.28% to 82.87.

European Central Bank President Mario Draghi said Tuesday the overall economic outlook for the euro zone still warrants accommodative monetary policy, given that inflation is still low and unemployment remains high. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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This article appears in: Investing , Forex and Currencies

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