Investing.com – The dollar traded higher against a basket of global currencies on Wednesday, buoyed by upbeat housing data indicating a turnaround in the sluggish pace of U.S. home building.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.14% to 94.58.
U.S. homebuilding in June topped analysts’ expectations, after declining for three straight months, as both single-family and multi-family construction increased, offsetting the recent raft of economic reports pointing to possible weakness in the economy.
Housing starts jumped 8.3 percent to a seasonally adjusted annual rate of 1.22 million units, the highest level since February, the Commerce Department said on Wednesday.
Economists had forecast activity rising to a rate of 5.8%.
The better-than-expected economic data helped the greenback recover recent losses against the euro.
EUR/USD fell 0.29% to $1.1521, as traders look ahead to the European Central Bank (ECB) meeting Thursday amid expectations that the central bank would avoid elaborating on its plans to taper its asset-purchase program.
Investors will also have to contend with an interest rate decision from the ECB, with the majority of analysts expecting an unchanged decision from the central bank.
USD/CAD traded at $1.2595, down 0.25%, as better-than-expected Canadian manufacturing data and a rise in oil prices underpinned a move higher in the oil-sensitive Canadian dollar.
Meanwhile, sterling remained range bound against the dollar, falling to $1.3034, down 0.06%, ahead of an update due Thursday on the progress of Brexit negotiations to determine terms of the UK’s exit from the European Union.
USD/JPY fell to Y111.70, down 0.4%, as traders awaited the Bank of Japan’s monetary policy statement later on Wednesday.
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS! https://i-invdn-com.akamaized.net/news/LYNXMPEB3C0TV_M.jpg © Reuters.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.