Dollar Falls as Disappointing Data Offset Strong Euro

The U.S. dollar is pulling back as traders react to the latest economic data from the United States and Europe.

The Durable Goods Orders report for June showed a smaller-than-expected increase of +0.3% month-over-month, missing analyst forecasts of +2.5%. Meanwhile, the Dallas Fed Manufacturing Index improved in July, beating consensus estimates of -1 to reach +1.3.

The EUR/USD currency pair is gaining ground as traders focus on a better-than-expected Ifo Business Climate report from Germany, which showed an improvement in business climate to 86.6 in July, exceeding analyst forecasts of 86.

The GBP/USD is losing ground despite the decline in oil prices amid signs of de-escalation in the Middle East.