Dollar Pulls Back From Multi-Week Highs Amid Mixed Economic Data
The U.S. dollar is pulling back from its multi-week highs as traders take profits after a strong rally, according to analysis for key currency pairs.
The DXY index is losing ground as traders focus on housing market data, which showed a decline in housing starts and building permits, while pending home sales increased but missed analyst forecasts.
Meanwhile, the job market remains strong, with 196,000 Americans filing for unemployment benefits last week, slightly below analyst estimates of 208,000. This bullish trend for the American currency is also reflected in the USD/JPY pair, which pulled back amid falling Treasury yields.
In other developments, EUR/USD is attempting to rebound after a sell-off triggered by hawkish comments from Fed Chair Warsh, while GBP/USD remains under pressure as traders react to the BoE's decision to leave interest rates unchanged.