The U.S. dollar turned negative against most major opponents in New York deals on Thursday, after data showed that the U.S. economy lost momentum in the third quarter, while pending home sales tumbled in September.
The report released by the Commerce Department showed that growth in U.S. economic activity saw a notable slowdown in the third quarter.
The Commerce Department said real gross domestic product rose by 1.5 percent in the third quarter compared to the 3.9 percent jump seen in the second quarter. Economists had expected a 1.7 percent increase.
Separate report from the Labor Department showed that first-time claims for U.S. unemployment benefits rose less than expected in the week ended October 24th.
The report said initial jobless claims inched up to 260,000, an increase of 1,000 from the previous week’s unrevised level of 259,000. Economists had expected initial jobless claims to climb to 265,000.
The U.S. pending home sales cooled in September for the second straight month and to their second lowest index reading in 2015, according to a report from the National Association of Realtors.
The pending home sales declined to 2.3 percent on year in September, from a slightly downwardly revised 6.1 percent in August. Economists had forecast a reading of 7.4.
The greenback showed mixed performance in European deals. While the currency rose against the pound and the yen, it fell against the euro and the franc.
The greenback pulled back to 1.5294 against the Sterling, after rising to a new 2-week high of 1.5242 earlier. The next possible support for the greenback may be located around the 1.535 region.
Figures from the Bank of England showed that UK loan approvals for house purchase unexpectedly dropped in September for the first time in four months from its highest level in two-and-a-half years.
The number of loans approved for house purchase totaled 68,874 in September, which was lower than August’s 70,664, revised from 71,030. Economists had forecast 72,400 approvals. The August figure was the highest since January 2014.
The greenback turned negative against the euro again, with the pair trading at 1.0960. This may be compared to a high of 1.0902 hit at 8:45 pm ET. If the greenback declines further, it may locate support around the 1.12 area.
Survey data from European Commission showed that Eurozone economic confidence improved unexpectedly in October.
The economic sentiment rose to 105.9 in October from 105.6 in the previous month. Economists had expected the index to fall to 105.1.
The greenback was trading lower at 0.9900 against the Swiss franc, off its prior high of 0.9956. Further weakness may take the greenback to a support around the 0.98 zone.
On the flip side, the greenback was trading higher at 121.17 against the Japanese yen. The greenback-yen pair is likely to find resistance around the 122.00 region.
Industrial production in Japan was up a seasonally adjusted 1.0 percent on month in September, the preliminary report from Ministry of Economy, Trade and Industry showed.
That beat forecasts for a decline of 0.5 percent following the 1.2 percent contraction in August.
The material has been provided by InstaForex Company – www.instaforex.com