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Dollar Little Changed After Mixed Economic Reports


The dollar is turning in a mixed performance against its major rivals Monday afternoon, but is little changed overall. The buck is slightly lower against its major European rivals, but is holding onto gains against the Japanese Yen. U.S. economic data proved mixed at the start of the new trading week.

Activity in the New York manufacturing sector has unexpectedly seen a modest contraction in the month of May, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index fell to a negative 1.0 in May from a positive 5.2 in April, with a negative reading indicating a contraction in regional manufacturing activity.

The index's pullback into negative territory came as a surprise to economists, who had expected the index to rise to a positive 7.0.

Homebuilder confidence in the U.S. has unexpectedly improved in the month of May, the National Association of Home Builders revealed in a report on Monday. The report said the NAHB/Wells Fargo Housing Market Index rose to 70 in May after pulling back to 68 in April. Economists had expected the index to come in unchanged compared to the previous month.

The dollar has fallen to around $1.0975 against the Euro this afternoon, from an early high of $1.0921.

Italy's consumer price inflation accelerated more than initially estimated in April, latest figures from the statistical office Istat showed Monday. The consumer price index climbed 1.9 percent year-over-year in April, slightly faster than the 1.8 percent increase reported earlier. In March, prices had risen 1.4 percent.

Greece's economy contracted for the second straight quarter at the start of 2017, flash data from the Hellenic Statistical Authority showed Monday. Gross domestic product shrank 0.1 percent sequentially in the first quarter, but slower than the 1.2 percent decline registered a quarter ago.

Portugal's economy grew at the fastest pace in nine years during the first three months of the year, led by strong export growth and domestic demand, preliminary data from Statistics Portugal showed Monday. Gross domestic product grew 2.8 percent year-on-year following 2 percent increase in the final three months of 2016. Economists had forecast 2.4 percent growth.

The buck dropped to an early low of $1.2940 against the pound sterling Monday, but has since rebounded to around $1.2890.

The greenback has climbed to around Y113.700 against the Japanese Yen this afternoon, from an early low of Y113.225.

Producer prices in Japan were up 0.2 percent on month in April, the Bank of Japan said on Monday. That was unchanged from the March reading, and it surpassed expectations for a decline of 0.1 percent.

by RTTNews Staff Writer

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