Dollar Little Changed After Mixed Economic Reports

14:17, 30th June 2015

(RTTNews) - The dollar is up slightly against the Euro Tuesday, but down modestly against the Japanese Yen and the pound sterling. Overall, the U.S. currency is little changed today. Greece remains in focus today, while U.S. economic data came in with mixed results. Investors will be watching for the release of the U.S. employment report for June on Thursday.

Home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in the month of April, according to a report released by Standard & Poor's on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index rose 4.9 percent year-over-year in April, reflecting a modest slowdown from the 5.0 percent growth seen in March.

The slowdown came as a surprise to economists, who had expected the annual rate of growth by the index to accelerate to 5.4 percent.

While MNI Indicators released a report on Tuesday showing a notable increase by its Chicago business barometer in the month of June, the index continued to point to a contraction in regional business activity. The report said the Chicago business barometer climbed to 49.4 in June from 46.2 in May, but a reading below 50 continues to indicate a contraction. Economists had expected the index to rise to 50.6.

After reporting a modest improvement in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing that its consumer confidence index increased by much more than expected in June.

The report said the consumer confidence index jumped to 101.4 in June from a downwardly revised 94.6 in May. Economists had expected the index to rise to 97.4 from the 95.4 originally reported for the previous month.

Meanwhile, last minute efforts to prevent Greece from a potential default or an exit from the Eurozone are underway. The Greek government has submitted a request for a two-year bailout with the European Stability Mechanism (ESM) to fully cover its financing needs, along with debt restructuring.

"From the first we made clear that the decision to call a referendum was not the end but the continuation of a negotiation seeking better terms for the Greek people," the report said.

This would imply the country is seeking a third rescue as its second bailout programme ends on today.

The dollar has climbed to around $1.1150 against the Euro Tuesday afternoon, from a low of around $1.1245 yesterday.

Eurozone inflation slowed in June largely due to another sharp fall in energy prices, indicating that the central bank has to do more to achieve its inflation target. Inflation eased to 0.2 percent in June, in line with economists' forecast, from 0.3 percent in the prior month, flash data from Eurostat showed Tuesday.

Eurozone unemployment rate remained unchanged at the lowest level seen since early 2012 in May, official data revealed Tuesday. As expected by economists, the jobless rate held steady at 11.1 percent in May, Eurostat reported. This was the lowest rate recorded in the euro area since March 2012.

Germany's retail sales grew for the second straight month in May albeit at a slower pace compared to April, data from Destatis showed Tuesday. Retail sales turnover advanced 0.5 percent from April, when it was up 1.3 percent. This was the second consecutive increase. Sales were expected to remain flat in May.

Germany's unemployment rate held steady in May, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in May, the same rate as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in June, data from the Federal Labor Agency reportedly revealed Tuesday. The number of people out of work fell 1,000 in June from the prior month, while it was forecast to drop by 5,000.

The jobless rate remained unchanged at 6.4 percent in June, in line with expectations.

The buck is trading around $1.5735 against the pound sterling this afternoon, which is near the middle of today's range of $1.5775 to $1.5690.

The U.K. economy grew more than previously estimated in the first quarter, the Office for National Statistics showed Tuesday. Gross domestic product gained 0.4 percent sequentially, revised up from the 0.3 percent growth estimated on May 28.

Consumer confidence in the United Kingdom surged in June, the latest survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and it was up from +1 in May.

The greenback has bounced back to around Y122.375 against the Japanese Yen this afternoon, from an early low of Y121.924.

Total labor cash earnings in Japan increased in May although the rate of growth eased from the previous month, a preliminary report from the Ministry of Health, Labor and Welfare showed Tuesday. Total earnings rose 0.6 percent year-over-year to JPY 268,389 in May. The labor cash earnings growth for April was revised to 0.7 percent from a 0.9 percent increase.

Japan's housing starts increased for the third straight month in May, the Ministry of Land, Infrastructure, Transport and Tourism revealed Tuesday. Housing starts advanced 5.8 percent on a yearly basis in May, faster than a 0.4 percent rise in April and 5.5 percent growth forecast by economists.