RTTNews - The dollar once again tested its 2009 lows versus the euro Tuesday morning, but has managed to stabilize amid speculation the recent rally for global equities has petered out.
Strong gains for stocks around the world have fueled increased risk aversion of late, driving the dollar sharply lower versus higher-yielding counterparts like the euro and loonie.
Traders on Tuesday will be paying attention to another round of key housing data, looking for clues that the embattled housing market has finally bottomed.
The S&P/Case-Shiller home price index, which tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S., is scheduled to be released at 9 AM ET.
Economists expect a 17.80% year-over-year decline in the 20-city composite house price index for May.
Yesterday, a report released by the Commerce Department revealed that new home sales jumped by 11% in June, the sharpest increase in nearly nine years.
The Conference Board is scheduled to release its consumer confidence report for July at about 10 am ET this morning. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index slipped to 48.7 in July.
The dollar was hovering near 1.4250 versus the euro approaching mid-morning, having earlier tested June's 7-month low of 1.4338. There was little first-tier economic data from Europe to consider.
Against the sterling, the dollar extended its run of choppy trading, improving to 1.6500 from an overnight low near 1.6550. On a longer term basis, the dollar remains little changed over the past two months.
The dollar retreated versus the yen Tuesday morning, slipping to 94.50 from a 3-week high of 95.36. Over the past few weeks, the dollar has found its footing after hitting a 5-month low of 91.74.
Its been a brutal month for the dollar versus the loonie amid mounting evidence that the Canadian economy is in relatively good shape. The buck slipped to a new 10-month low of C$1.0748 before attempting to stabilize near C$1.08.
San Francisco Federal Reserve Bank President Janet Yellen is scheduled to speech to the Idaho/Oregon Bankers Association on the economic outlook in Couer d'Alene, Idaho.
For comments and feedback: contact email@example.com