The dollar strengthened against its peers today surging to 8 month highs following the release of solid US economic data which bolstered optimism over the strength of the economy. The US Commerce Department released figures which revealed that new home sales climbed 10.7% to 495,000 units in October surpassing forecasts for an increase of 6.0% to 500,000. US Department of Labor reported US jobless claims filed for last week dropped by 12,000 to total 260,000. US Commerce Department revealed that durable goods orders surged by 3.0% in October well beyond expectations for a rise of 1.5%. US personal spending ticked up 0.1% in October compounding forecasts for a rise of 0.3%. The US Dollar Index was up 0.40% trading a new 8 month high of 100.08.
The euro weakened against the dollar with the pair trading at 1.06192 off its session low of 1.0566 after having come off its session high of 1.0689 reached earlier in the day. The pair hit new 7 month lows as market sentiment took a blow on the back of news confirming that the Turkish government shot down a Russian warplane on the Syrian border having entered Turkish airspace while Russia had denounced the report.
The pound held its ground against the dollar with the pair trading at 1.5124 near its session high of 1.5130 after having come off its session low of 1.5055 reached earlier in the day. The pound had softened after the Bank of England’s inflation report hearings highlighted a discouraging tone. BOE Governor Carney indicated that rates will remain at record lows for an extended period presenting a different outlook as stated in the past.
The yen weakened against the dollar with the pair trading at 122.65 off its session high of 122.93 having come off its session low of 122.25 reached earlier in the day. The Bank of Japan released its October meeting minutes which revealed that some of its board members believe that the country is falling behind in reaching the central bank’s target for inflation because of an output gap in GDP. This view has fueled concerns that the BOJ’s stimulus program is becoming ineffective although it is also thought that lower oil prices are heightening the risk of deflation.
The Australian and Canadian dollars weakened while the New Zealand dollar held its ground against the greenback. The Aussie was down roughly 0.2% with the pair trading at 0.7250 off its session low of 0.7227 after having come off its session high of 0.7283 reached earlier in the day. The kiwi dollar traded steadily against the greenback at 0.6572 near its session high of 0.6580 after having come off its session low of 0.6546 reached earlier in the day. The loonie lost roughly 0.1% against the greenback with the pair trading at 1.3294 off its session high of 1.3338 after having come off its session low of 1.3279 reached earlier in the day. The pair was not far off its 2 month high of 1.3437 as US optimism gave the greenback an edge over the loonie and the other majors.
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