Dollar Loses Gains vs. Majors After Release of US Economic Data

The US dollar was rising earlier today as economic reports from Europe and China prompted traders to seek refuge, buying safer currencies. Yet the greenback erased its gains against other majors after data from the United States themselves turned out to be negative as well.
US new home sales fell unexpectedly 517,000 in May to 482,000 in June. And the May’s reading itself was negatively revised from 546,000. Released earlier, the flash Markit manufacturing Purchasing Managers’ Index showed that it was little changed this month from the month before.
The dollar was hit hard by the poor housing reports. While the greenback retained gains versus commodity currencies and the Swiss franc, it pulled back against other majors and actually fell against the yen.
EUR/USD traded at about 1.0977 as of 19:13 GMT today after falling to the low of 1.0925 intraday. GBP/USD was at 1.5501 following the drop from 1.5511 to 1.5466. Meanwhile, USD/CHF rallied from 0.9584 to 0.9626 and USD/CAD advanced from 1.3035 to 1.3064, touching 1.3102 — the highest level since September 2004.

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