The dollar is losing ground against all of its major competitors Monday afternoon. The U.S. currency was up in early trade, after consumer spending topped expectations. However, the buck reversed after the unexpected drop in pending home sales.
U.S. consumer spending rose a little more than economists had predicted last month, according to new government statistics released Monday. This came despite a slower-than-expected expansion in income.
Data released by the U.S. Department of Commerce showed that personal spending rose by 0.4 percent in August. Economists had expected the figure to rise by 0.3 percent.
Personal income also increased during the month. The figures showed a 0.3 percent advance during August, below expectations of a 0.4 percent increase.
A measure of strength in the housing market unexpectedly declined for August, raising concerns that home sales figures might be poised for a decline in the near future. The National Association of Realtors revealed that its pending home index fell 1.5 percent in August. This came as a surprise to economists, who were generally expecting a 0.5 percent increase for the month.
New York Fed President William Dudley backed hopes for a rate hike later this year. While speaking in New York, Dudley indicated that U.S. economy is doing “pretty well,” and if the economy continues its present course, there is a strong case for liftoff.
The dollar rose to an early high of $1.1145 against the Euro Monday, but has since dropped to around $1.1235.
Italy’s consumer confidence and business sentiment remained strong in September at their highest level in more than two years, the statistical office ISTAT said Monday. The consumer confidence index climbed to 112.7 from 109.3 in August, which was revised from 109. The index rose for a second straight month.
The buck fell to a low of $1.5241 against the pound sterling early Monday, but has since rebounded to around $1.5170.
England/Wales house price growth eased to a 21-month low in August, data from Land Registry showed Monday. House prices advanced 4.2 percent year-on-year in August, which was the slowest growth since November 2013, when it climbed 3.5 percent. In July, house prices rose 4.6 percent and by 4.9 percent in June.
Bank of Japan Governor Haruhiko Kuroda said employment and wage growth should rise further in order to attain its inflation target.
“The positive feedback loop between the increases in employment and wages and the rise in inflation should gain further momentum in order to achieve the price stability target of 2 percent,” Kuroda told business leaders in Osaka on Monday.
He vowed to continue to strongly commit to overcoming deflation and to achieving inflation target.
The greenback has fallen to around Y119.815 against the Japanese Yen Monday afternoon, from Friday’s 2-week high of around Y121.200.
Japan’s leading index declined slightly less than estimated in July, final data from the Cabinet Office showed Monday.
The leading index dropped to a four-month low of 105.0 in July from 106.7 in June. The initial estimate for July was 104.9. It signals the trend in future economic activity.