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Dollar Little Changed As Data Drought Persists

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The dollar is nearly flat in comparison to its major rivals Tuesday afternoon. A number of investors remain on the sidelines due to the continued lack of U.S. economic data. However, things will begin to pick up on the economic front tomorrow.

New home sales for April are slated for release Wednesday morning and the minutes from the most recent meeting of the Federal Reserve will be released Wednesday afternoon. Beyond that, traders can look forward to weekly jobless claims and existing home sales on Thursday, while durable goods orders and consumer sentiment are set for Friday.

The dollar dropped to an early low of $1.1829 against the Euro Tuesday, but has since bounced back to around $1.1780.

Bank of England Governor Mark Carney said on Tuesday that interest rates are set to rise at a gentle pace and the slowdown seen in the first quarter was temporary.

Speaking to lawmakers, Carney said households expect rate hikes over the course of the year. They also expect the bank to proceed at a very gentle pace.

The buck fell to a low of $1.3491 against the pound sterling Tuesday morning, but has since rebounded to around $1.3435.

The UK budget deficit narrowed in April, the Office for National Statistics reported Tuesday. Public sector net borrowing, excluding public sector banks, decreased GBP 1.6 billion to GBP 7.8 billion in April. This was the lowest April net borrowing since 2008. The expected level was GBP 8.5 billion.

The greenback rose to an early high of Y111.184 against the Japanese Yen Tuesday, but has since eased back to around Y110.975.

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