Dollar Fails To Hold Gains, Turns Weak Ahead Of Powell's Speech
The U.S. dollar saw a bright spell in positive territory Wednesday morning after data showed a bigger-than-expected increase in durable goods orders in the month of July.
However, the currency retreated subsequently as traders awaited Federal Reserve Chairman’s speech at the Jackson Hole Symposium on Thursday.
Powell’s speech, which is scheduled to start ahead of the trading hours tomorrow, is expected to provide clues about the central bank’s monetary policy.
The dollar index, which dropped to a low of 92.85 after having firmed up to 93.36 earlier in the day, recovered to 93.00 subsequently before easing to 92.90, netting a loss of about 0.13%.
Against the Euro, the dollar was up marginally at $1.1830.
The Pound Sterling was stronger by nearly 0.5% with a unit of sterling fetching $1.3211.
The yen was firmer by nearly 0.4% at 105.99 a dollar.
Data released by the Commerce Department this morning showed durable goods orders skyrocketed by 11.2% in July after surging up by a revised 7.7% in June. Economists had expected durable goods orders to increase by 4.3% compared to the 7.6% jump that had been reported for the previous month.
The bigger than expected leap in durable goods orders was primarily due to a sharp increase in orders for transportation equipment, which soared by 35.6%.
Excluding the substantial increase in orders for transportation equipment, durable goods orders rose by a much more modest 2.4% in July after climbing by 4% in June. The increase still exceeded estimates for 2% growth.
The material has been provided by InstaForex Company – www.instaforex.com