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Overall: The dollar continues to get battered and each day seems to bring new reasons not to buy the greenback. Lately, positive economic news leading to speculation the global economy is on the road to recovery has led traders to exit lower yielding assets in favor of ‘higher risk/higher reward’ assets. That has meant the selling of the dollar. Today, the Russian government said emerging market leaders may discuss the idea of a supranational currency and the accompanying speculation of a new global currency is obviously affecting the greenback negatively. Once again the dollar dropped against all of the other major currencies with the euro moving above the 1.4300 level for the first time this year.

U.S. pending home sales jumped 6.7% in April, according to the National Association of Realtors (NAR). Economists had expected a 0.4% gain. April’s gain comes after a 3.2% gain in March and marks the third consecutive monthly gain. Lower prices and record low mortgage interest rates continue to attract buyers.

The Euro (Eur/Usd) The euro posted strong gains on Tuesday, jumping more than 100 pips and moving above the 1.4300 level for the first time this year. Traders are continuing to bet that record U.S. borrowing will hurt the dollar and emerging market governments may consider alternatives to the dollar as the world’s main currency. The pair dropped during the European session after Europe’s jobless rate was reported to have increased to 9.2%, the highest in nearly 10 years. The pair closed the day near the 1.4305 level.
 
The Pound (Gbp/Usd) The pound continues to strengthen against the dollar, gaining another 100+ pips on Tuesday, closing at 1.6575, after trading in a wide 270 pip range. Economic news from the U.K. continues to be positive. This morning, mortgage approvals came in at 43K, beating analysts’ expectations of 41K and the previous read of 40K. Net lending to individuals also came in higher than expected at 1.3B.

The Aussie (Aud/Usd) Continued strength in global equity markets and rising commodity markets continue to push the Australian dollar higher. The aussie gained 100 pips on Tuesday, closing above the 0.8200 level, the highest close since September 2008. The RBA kept interest rates unchanged overnight, as expected, the second month in a row that the RBA has decided to hold steady. Tonight Australia will release GDP figures and they are expected to show the economy contracted 0.1% during the first quarter.

The Cad (Usd/Cad) For the past two days the dollar has shown signs of strengthening against its Canadian counterpart, but today the Canadian dollar fought back and erased the small losses it sustained. The pair dropped 90 pips on the day, as oil prices continue to hold above $68 a barrel and global equity markets continue to move higher. The pair closed Tuesday trade just above the 1.0800 level.

The Swissy (Usd/Chf) Much like the cad, the swissy erased 2 days of small gains on Tuesday as the dollar weakened across the board. The pair lost 75 pips on the day and closed near 1.0610. Swiss GDP was released this morning and showed the economy contracted less than expected. The quarterly release came in at -0.8%, better than the -1.4% that was expected.

The Yen (Usd/Jpy) The yen had another strong move on Tuesday, but this time is was to the downside. The pair lost 75 pips on the day, but was unable to close below the 20 and 200 day simple moving averages. Today’s moves erased more than 50% of Monday’s gains as U.S. equity markets were sluggish for most of the day. The pair closed the day near 1.9570.