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Dollar pushes higher after upbeat U.S. home sales report

Published 22/07/2015, 15:50
Dollar extends gains vs. rivals as U.S. housing data supports
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Investing.com - The dollar pushed higher against a basket of other major currencies on Wednesday, as data showing that U.S. existing home sales hit the highest level since 2007 in June added to expectations for the Federal Reserve to raise interest rates in the coming months.

The National Association of Realtors reported on Wednesday that U.S. existing home sales increased by 3.2% to 5.49 million units last month from 5.32 million in May. Analysts had expected existing home sales to rise 1.2% to 5.40 million units in June.

The data came after Fed Chair Janet Yellen said last week that the Fed is likely to raise rates "at some point this year."

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.43% at 97.84, re-approaching Monday's three-month highs of 98.31.

EUR/USD dropped 0.44% to 1.0886, after rising to highs of 1.0966 earlier in the session.

Sentiment on the euro remained vulnerable as the Greek parliament was set to vote later Wednesday on a second set of reforms needed to secure the country's bailout deal.

If lawmakers approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors.

Greece's next major deadline is August 20, when it must pay €3.2 billion owed to the European Central Bank, followed by a payment of €1.5 billion to the International Monetary Fund in September.

The pound was higher, with GBP/USD up 0.41% at 1.5619.

Earlier Wednesday, the minutes of the Bank of England's July meeting showed that all nine members of the Monetary Policy Committee were in favor of leaving the key interest rate at a record low of 0.5% and making no changes to the central bank's £375 billion asset-purchase program.

According to the minutes, a number of policymakers see rising inflation risks.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.17% at 124.10 and with USD/CHF gaining 0.41% to 0.9625.

The Australian and New Zealand dollars pushed lower, with AUD/USD down 0.77% at 0.7363 and with NZD/USD declining 0.95% to 0.6560.

Data earlier showed that Australia's consumer price index rose 0.7% in the second quarter, less than the expected 0.8% increase and following an uptick of 0.2% in the three months to March.

Separately, Reserve Bank of Australia Governor Glenn Stevens said, at an event in Sydney, that the bank's two rate cuts this year appeared to be working to stimulate growth.

Meanwhile, USD/CAD climbed 0.79% to fresh six-year highs of 1.3047.

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