The dollar is bouncing back from some early weakness against all of its major competitors on Tuesday, following the release of some housing data and the dip in U.S. consumer confidence.
Home prices in major U.S. metropolitan areas saw continued growth in the month of May, according to a report released by Standard & Poor’s on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index jumped by 2.4 percent on a non-seasonally adjusted basis in May compared to a revised 2.6 percent increase in April.
Economists had been expecting prices to increase by 2.0 percent compared to the 2.5 percent growth originally reported for the previous month.
With consumer expectations regarding the short-term outlook weakening in July, the Conference Board released a report on Tuesday showing that U.S. consumer confidence for the month fell by more than economists had anticipated.
The Conference Board said its consumer confidence index dropped to 80.3 in July from a revised 82.1 in June. Economists had been expecting the index to dip to 81.0 from the 81.4 originally reported for the previous month.
The International Monetary Fund on Monday approved a loan tranche worth EUR 1.72 billion for Greece after a fourth review of the struggling Eurozone member state. Last week, Greece completed the adoption of reforms that are required to receive bailout payments from the country’s international lenders.
The IMF Executive Board also waived three end-June performance criteria —the overall stock of government debt, government domestic arrears, and the general government balance— on which the data are not yet available.
It also decided to forgo the requirement of a modification of the end-September performance criterion on privatization receipts.
The dollar slipped to over a 1-month low of $1.3301 against the Euro early Tuesday, but has since rebounded to around $1.3250.
Eurozone economic confidence strengthened for a third month to a 15-month high in July, driven by improved sentiment among consumers, business leaders, service providers and retailers, boosting hopes of a recovery.
The economic confidence index improved to 92.5, the highest since April last year, from 91.3 in June, survey data from the European Commission showed Tuesday. The reading matched economists’ estimate.
Sentiment among German consumers is set to rise to its highest level in almost six years heading into August, as households’ propensity to buy improved along with an increase in their economic and income expectations at the start of summer, a survey report from market research firm GfK revealed Tuesday.
The forward-looking consumer confidence index posted 7 in August, up from 6.8 in July. A higher value was last recorded in September 2007, when the indicator was at 7.3. Economists had expected a more modest increase to 6.9.
Germany’s EU harmonized inflation stayed unchanged in July, contrary to economists’ forecast for a slowdown, latest data showed Tuesday.
Inflation, as per the harmonized index of consumer prices (HICP), was 1.9 percent in July, unchanged from the June figure, the Federal Statistical Office said. Economists had forecast inflation to ease to 1.8 percent.
Spanish recession eased in the second quarter of 2013 as improving external demand contributed positively to the overall economic output, preliminary estimates from the statistical office INE revealed Tuesday.
Gross domestic product contracted 0.1 percent quarter-on-quarter in the second quarter of 2013, slower than a 0.5 percent fall in the first quarter. The outcome was in line with economists’ expectations.
The greenback displayed some early weakness against the pound sterling, dipping to around $1.5353, but has since extended its gains from the previous session to over a 1-week high of $1.5243 on Tuesday.
The buck dipped to a low of Y97.748 against the Japanese Yen, but has since bounced back to around Y98.000.
The unemployment rate in Japan was a seasonally adjusted 3.9 percent in June, the Ministry of Internal Affairs and Communications said on Tuesday. That beat forecasts for 4.0 percent after showing 4.1 percent in May.
Industrial output in Japan contracted a seasonally adjusted 3.3 percent in June compared to the previous month, the Ministry of Economy, Trade and Industry said on Tuesday, falling for the first time in five months. The headline figure missed forecasts for a decline of 1.5 percent following the 1.9 percent increase in May.
Japan’s small business confidence declined in July, survey results published by Shoko Chukin Bank showed Tuesday. The business sentiment index fell to 49.4 in July from 49.6 in June, the report showed.