Dollar Mixed As Investors Await A Slew Of Economic Reports
26 September 2017 - 1:00AM
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The dollar is turning in a mixed performance against its major
rivals Monday afternoon. The lack of U.S. economic data is keeping
some investors on the sidelines today. Things will begin to pick up
on the economic front tomorrow with the release of the S&P
Case-Shiller data, as well as new home sales and consumer
confidence.
Durable goods orders and pending home sales are slated for
Wednesday, while GDP, weekly jobless claims and international trade
are set for Thursday. Personal income, consumer spending, the
Chicago PMI and consumer sentiment are also set for Friday.
The buck is down against the Japanese Yen Monday, but is up
against its major European rivals. The dollar's gains are strongest
against the Euro, following the results of the German election over
the weekend. German Chancellor Angela Merkel won a fourth term in
office on Sunday, but will have to govern with a far less stable
coalition.
French President Emmanuel Macron also suffered a defeat at the
Senate elections on Sunday.
The dollar has risen to over a 1-week high of $1.1845 against
the Euro Monday afternoon, from an early low of $1.1936.
German business sentiment dropped for the second straight month
in September as companies were less satisfied with their current
business situation and their short-term outlook, survey data from
the Ifo Institute showed Monday.
The business confidence index fell to 115.2 in September, while
it was expected to remain unchanged at 115.9 seen in August.
There is a pocket of risk in the rapid growth of UK consumer
credit, the Financial Policy Committee of the Bank of England said
Monday.
Lenders overall are placing too much weight on the recent
performance of consumer lending in benign conditions as an
indicator of underlying credit quality.
Banks are underestimating the losses they could incur in a
downturn, the FPC noted.
The buck rose to a high of $1.3428 against the pound sterling
Monday, but has since eased back to around $1.3470.
Japan's government maintained its economic assessment for
September, saying the economy is on a moderate recovery.
In its monthly report, the Cabinet Office retained its view on
private consumption, business investment, exports, industrial
production, corporate profits and employment situation.
The greenback reached an early high of Y112.53 against the
Japanese Yen Monday, but has since retreated to around
Y111.625.
The manufacturing sector in Japan continued to expand in
September, and at a faster rate, the latest survey from Nikkei
revealed on Monday with a four-month high manufacturing PMI score
of 52.6. That's up from 52.2 in August, and it moves further above
the boom-or-bust line of 50 that separates expansion from
contraction.
Japan's leading index decreased less than initially estimated in
July, latest data from the Cabinet Office showed Monday. The
leading index, which measures the future economic activity, dropped
to 105.2 in July from 105.7 in June. The reading for July was
revised up from 105.0.
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