Dollar Trading Mixed On Light Data Day

The dollar is turning in a mixed performance against its major rivals Tuesday afternoon, but remains little changed overall. The lack of U.S. economic data this morning is keeping some investors on the sidelines.

New home sales data will be released Wednesday morning, followed by weekly jobless claims, international trade and durable goods orders on Thursday. GDP and consumer sentiment are also slated for Friday.

The dollar rose to an early high of $1.1654 against the Euro Tuesday, but has since eased back to around $1.1680.

Eurozone private sector activity growth weakened in July, flash survey results from IHS Markit revealed Tuesday. The composite output index dropped to 54.3 in July from 54.9 in June. The score was expected to fall slightly to 54.8.

Germany’s private sector activity expanded at the fastest pace in five months in July driven by a stronger increase in manufacturing output, flash data from IHS Markit showed Tuesday. The composite output index climbed to 55.2 from 54.8 in June. The score was expected to remain at 54.8. The pace of expansion was the fastest since February.

France’s private sector expanded at a slower pace in July, flash data from IHS Markit showed Tuesday. The composite output index dropped to 54.5 from 55.0 in June. The score was forecast to fall slightly to 54.9 but it remained above the neutral 50.0 mark for a twenty-fifth month in a row.

France’s manufacturing confidence weakened for the second straight month in July, though slightly, survey data from the statistical office Insee showed Tuesday. The manufacturing confidence dropped to 108.0 in July from 109.0 in June, which was revised down from 110. Meanwhile, the index was expected to remain stable at 110.0.

The buck climbed to an early high of $1.3071 against the pound sterling Tuesday, but has since retreated to around $1.3135.

Media reports suggest that the Bank of Japan officials are considering tweaks to its massive bond-buying program at its meeting due next week.

According to reports, the BOJ is holding preliminary discussions for making significant changes to yield-curve control or asset-purchase settings to keep its stimulus program sustainable while reducing the harm it causes in markets and on the profitability of commercial banks.

The BOJ will announce its next monetary policy decision on July 31.

The greenback has slipped to around Y111.200 against the Japanese Yen Tuesday afternoon, from an early high of Y110.960.

The manufacturing sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Nikkei revealed on Tuesday with a 20-month low manufacturing PMI score of 51.6. That’s down from 53.0 in June, although it remains above the boom-or-bust line of 50- that separates expansion from contraction.

Japan’s leading index improved as initially estimated in May, latest figures from the Cabinet Office showed Tuesday. The leading index, which measures the future economic activity, climbed to a 6-month high of 106.9 in May from 106.2 in April. That was in line with the flash data published on July 7.

by RTTNews Staff Writer

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