Forex News: U.S. Dollar Lower Ahead Of Economic Data

U.S. Dollar Lower Ahead Of Economic Data

(RTTNews) - The U.S. dollar traded lower against its major counterparts in the New York session on Wednesday, as investors looked ahead to key U.S. data, including a GDP report and inflation readings for more clarity about the Federal Reserve's likely interest rate moves.

Growing hopes that the Fed will start lowering borrowing costs in September also weighed on the currency.

Flash data from S&P Global showed that manufacturing PMI declined to 49.5 in July from 51.6 in June. Economists had expected the reading to rise to 51.7.

Data from the Commerce Department unexpectedly showed a continued decrease in new home sales in June.

New home sales fell by 0.6 percent to an annual rate of 617,000 in June after plummeting by 14.9 percent to a revised rate of 621,000 in May.

Economists had expected new home sales to surge by 3.4 percent to a rate of 640,000 from the 619,000 originally reported for the previous month.

The greenback declined to a 6-day low of 0.8828 against the franc and a 2-1/2-month low of 153.10 against the yen, from its early highs of 0.8921 and 155.98, respectively. The greenback is seen finding support around 0.87 against the franc and 147.00 against the yen.

The greenback edged down to 1.0866 against the euro, from an early nearly 2-week high of 1.0825. The greenback is likely to challenge support around the 1.10 level.

The greenback fell to a 2-day low of 1.2937 against the pound, from an early nearly 2-week high of 1.2877. The currency is poised to challenge support around the 1.31 level.

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