The dollar is down slightly against all of its major rivals Wednesday afternoon as investors continue to buy up equities at reduced prices. There was a sharp sell-off in equities after British voters decided to exit the European Union at the end of the previous week, which carried over into Monday’s session. As traders bailed on equities, they flooded into safe havens like gold, the Japanese Yen and the dollar. However, that trend has reversed as the initial shock of the Brexit vote has begun to wear off.
While the Commerce Department released a report on Wednesday showing a slightly smaller than expected increase in U.S. personal income in the month of May, the report also said personal spending climbed in line with economist estimates.
The report said personal income edged up by 0.2 percent in May after rising by an upwardly revised 0.5 percent in April.
Economists had expected income to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.
Meanwhile, the Commerce Department also said personal spending climbed by 0.4 percent in May after spiking by an upwardly revised 1.1 percent in April. Spending had been expected to increase by 0.4 percent compared to the 1.0 percent jump originally reported for the previous month.
After reporting increases in U.S. pending home sales in the three previous months, the National Association of Realtors released a report on Wednesday showing that pending sales pulled back by more than expected in the month of May.
NAR said its pending home sales index slid 3.7 percent to 110.8 in May from a downwardly revised 115.0 in April. Economists had expected the index to drop by 1.0 percent.
The dollar fell to a low of $1.1130 against the Euro Wednesday, but has since bounced back to around $1.1110.
Eurozone economic sentiment eased slightly in June ahead of the Brexit vote, the results off a survey by European Commission revealed Wednesday.
After rising for two straight months, the economic sentiment index slid marginally to 104.4 in June from revised 104.6 in May. The score was expected to remain at 104.7, unchanged from the initial estimate for May.
Germany consumer confidence is set to improve in July despite concerns about Brexit, survey data from the market research group GfK showed Wednesday. The forward-looking consumer sentiment index rose to 10.1, while it was expected to remain unchanged at 9.8.
German consumer prices accelerated as expected in June, preliminary estimate from Destatis showed Wednesday. Consumer prices rose 0.3 percent from last year, in line with expectations, following a 0.1 percent increase in May.
The buck dropped to an early low of $1.3532 against the pound sterling Wednesday, but has since rebounded to around $1.3425.
U.K. house price growth accelerated more than expected in June, data from the Nationwide Building Society showed Wednesday. House prices climbed 5.1 percent annually, following a 4.7 percent rise in May. Economists had forecast prices to grow 4.9 percent. This was also the fastest growth in three months.
U.K. mortgage approvals increased in May and secured lending accelerated from April, the Bank of England said Wednesday. The number of loans approved for house purchases rose to 67,042 from 66,205 in April. It was expected to fall to 65,000.
The greenback has retreated to around Y102.515 against the Japanese Yen this afternoon, from an early high of Y102.802.
The value of retail sales in Japan were roughly unchanged on a seasonally adjusted monthly basis, the Ministry of Economy, Trade and Industry said on Wednesday coming in at 11.543 billion yen. The headline figure was in line with expectations following the 0.1 percent decline in April.
The material has been provided by InstaForex Company – www.instaforex.com