The dollar strengthened against its peers today following the release of solid US economic data and as Federal Reserve Chair Yellen’s remarks at the end of last week further boosted the greenback. Pending home sales surged 3.1% in February well beyond forecasts of a 0.4% increase. Personal spending ticked up 0.1% in February following a decline of 0.2% in January while experts forecast an increase of 0.2%. Personal income gained 0.4% in February following the same increase in January ahead of forecasts for a 0.3% increase.

The euro weakened against the dollar with the pair down over 0.5% trading below its 1.09 handle. The euro overlooked data which revealed that German consumer price inflation rose at an annualized rate of 0.3% in March matching expectations following an increase of 1% in February. Spanish consumer price inflation dropped 0.7% in March while experts forecast a 1.0% decrease after dropping 1.1% in February. The European Union, the International Monetary Fund and the European Central Bank are still in the process of reviewing Greece’s amended reforms in connection with its bailout extension being secured.

The pound weakened against the dollar with the pair down over 0.5% trading below its 1.49 handle as US economic data weighed in. The Bank of England released data which revealed that personal net lending was up by 2.5 billion pounds in February from 2.4 billion in January. Mortgage approvals jumped to its highest level in 6 months. The pound had been supported by comments from Bank of England Governor Carney which indicated that its interest rate will move upwards on its next adjustment.

The yen weakened against the dollar with the pair trading back up over its 120 handle. Initial data revealed that Japan’s industrial production declined by 3.4% in February compounding forecasts for a 1.8% decrease following a 3.7% gain in January.

The Australian, New Zealand and Canadian dollars were considerably weaker against the dollar. The Aussie dollar, kiwi dollar and the loonie weakened to 1 week lows against the greenback as US economic data fueled positive outlook for the US economy. Data released out of Canada revealed that raw materials prices increased by 6.1% in February surpassing forecasts for a 5.1% increase.

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