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26 August 2015, 17:04
On Wednesday the dollar edged higher against the euro and yen after official
data signaled an surprisingly large increase in the sale of durable goods by
U.S. companies in July.
Earlier Wednesday, the U.S. Commerce Department reported that total durable goods orders rose by 2.0% last month, beating expectations for a decline of 0.4%. Orders for durable goods in June were revised to a gain of 4.1% from a previously reported increase of 3.4%.
Core durable goods orders, which exclude volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%. Core durable goods orders rose 1.0% in June, whose figure was revised from previously reported gain of 0.6%.
Chinese stocks edged lower Wednesday during the Asia trade, but a move by Chinese policy makers to pour 140 billion yuan into the financial system helped calm jittery markets and push the dollar higher.
Over the past week, the greenback has been particularly sensitive to market rout in China, as investors reflect on whether trouble in the world’s second-largest economy might prevent the Federal Reserve from raising the fed-funds rate, its benchmark interest rate, in September.
Moreover, robust U.S. economic data released this week has helped revive investors’ expectations for a September rate increase.
“The expectations are that September does remain a candidate for a Fed rate increase,” said Naeem Aslam, chief market analyst at Avatrade.
Investors will be closely monitoring a revision to second-quarter GDP for any hint that growth was stronger than expected. The Fed’s annual conference in Jackson Hole later this week will also be eyed.
The euro is down 1.21% against the dollar which currently at 1.1378.
The currency slipped after policy makers from the European Central Bank emphasized that the central bank is ready to expand its program of quantitative easing, if needed. Since the beginning of the week, the single currency has fallen 0.1% against the dollar since the beginning of the week.
Against the Japanese yen, the dollar gained 0.66% to trade at ¥119.62.
The pound sterling dropped 0.71% to $1.5577.
Earlier Wednesday, the U.S. Commerce Department reported that total durable goods orders rose by 2.0% last month, beating expectations for a decline of 0.4%. Orders for durable goods in June were revised to a gain of 4.1% from a previously reported increase of 3.4%.
Core durable goods orders, which exclude volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%. Core durable goods orders rose 1.0% in June, whose figure was revised from previously reported gain of 0.6%.
Chinese stocks edged lower Wednesday during the Asia trade, but a move by Chinese policy makers to pour 140 billion yuan into the financial system helped calm jittery markets and push the dollar higher.
Over the past week, the greenback has been particularly sensitive to market rout in China, as investors reflect on whether trouble in the world’s second-largest economy might prevent the Federal Reserve from raising the fed-funds rate, its benchmark interest rate, in September.
Moreover, robust U.S. economic data released this week has helped revive investors’ expectations for a September rate increase.
“The expectations are that September does remain a candidate for a Fed rate increase,” said Naeem Aslam, chief market analyst at Avatrade.
Investors will be closely monitoring a revision to second-quarter GDP for any hint that growth was stronger than expected. The Fed’s annual conference in Jackson Hole later this week will also be eyed.
The euro is down 1.21% against the dollar which currently at 1.1378.
The currency slipped after policy makers from the European Central Bank emphasized that the central bank is ready to expand its program of quantitative easing, if needed. Since the beginning of the week, the single currency has fallen 0.1% against the dollar since the beginning of the week.
Against the Japanese yen, the dollar gained 0.66% to trade at ¥119.62.
The pound sterling dropped 0.71% to $1.5577.