Dollar Drifts Lower Against Major Rivals

(RTTNews) - Despite fairly strong economic data, the U.S. dollar shed ground against most of its major counterparts on Tuesday, while the Euro firmed, following comments from European Central Bank President Christine Lagarde.

Traders digested a slew of U.S. economic data. A report from the Commerce Department showed durable goods orders shot up by 1.7% in May after jumping by an upwardly revised 1.2% in April. Economists had expected durable goods orders to slump by 1% compared to the 1.1% advance that had been reported for the previous month.

A separate Commerce Department report said new home sales soared 12.2% to an annual rate of 763,000 in May after surging 3.5% to a revised rate of 680,000 in April. Economists had expected new home sales to slump 1.2% to an annual rate of 675,000 from the 683,000 originally reported for the previous month.

A report released by the Conference Board showed the consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 originally reported for the previous month.

European Central Bank President Christine Lagarde said today that the central bank is committed to attain the 2% inflation target. Without any material change to the euro area outlook, the bank will continue to increase rates in July, Lagarde reiterated.

Lagarde stated that inflation in the Euro Area is persistently high and expected to remain so for an extended period, making it unlikely for the central bank to declare that peak rates have been reached in the near term.

Several central bank officials, including Federal Reserve Chair Jerome Powell, Bank of England governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda are scheduled to speak at the policy panel before the European Central Bank Forum in Sintra on Wednesday.

The dollar index weakened to 103.32 around mid morning, and despite edging up to 102.48, remains weak, netting a loss of 0.21%.

Against the Euro, the dollar eased to 1.0962, about 0.5% down from previous close. The dollar is trading at 1.2750 against Pound Sterling, weakening from 1.2714.

Against the Japanese currency, the dollar is trading at 144.04 yen, weakening from 143.50 yen.

The dollar is weak against the Aussie at 0.6688, easing from 0.6676. Against Swiss franc, the dollar is weak, fetching CHF 0.8937 a unit, while against the Loonie, it climbed nearly 0.3% to C$1.3192 as oil prices fell sharply, and Canada's inflation slowed in May.