RTTN: Dollar Mixed Versus Majors Ahead Of Housing Data
(RTTNews) - The dollar gained against the sterling, but was stuck in the mud versus the euro and yen Tuesday morning in New York ahead of reports on factory orders and pending home sales for the month of November.
Some additional positioning may take place ahead of this week's all-important monthly jobs report for December. Analysts predict choppy trading prior to Friday's employment data, which will give the best view of whether the US may be in for a jobless recovery.
December was a strong month for the dollar, but it has leveled off dramatically so far in January, pulling back from multi-month highs versus a number of key counterparts.
The buck slipped to a 2 1/2 week low of 1.4483 versus the euro overnight, but improved to 1.4417 approaching 7am ET.
Eurozone annual inflation climbed to a ten-month high in December after returning to a positive territory in November. Still, inflation remained anchored within the central bank target. In the 16-nation bloc, annual inflation rose to 0.9% in December from 0.5% in November, a flash estimate released by the Eurostat showed Tuesday.
Against the sterling, the dollar fought back to 1.6000, paring its losses from the previous few sessions and moving back toward a 3-month high of 1.5831, set a week ago.
The United Kingdom's CIPS / Markit Purchasing Managers' Index or PMI for the construction sector stood at a seasonally adjusted 47.1 in December, a report from Markit Economics revealed on Tuesday, extending the current sequence of contraction to twenty-two months.
On the flip side, the dollar tailed off verus the yen, ending an extending uptrend for now. The buck fell below Y92, down from a 4-month high above Y93.
The buck was unable to make up any ground versus the surging loonie, staying near $1.0300. The pair has been on a trek toward parity for the past few weeks, as oil prices support the Canadian currency.
Federal Reserve Governor Elizabeth Duke said on Monday that "exceptionally low" interest rates are likely to be retained by the central bank for an "extended period" to foster a recovery in economic activity and job creation.
