Daily Afternoon Report 16.02.2018

The U.S. dollar turned higher against other major currencies on Today, bouncing off a three-year low after the release of strong U.S. housing sector data offset concerns over the rising U.S. deficit.

The dollar rebounded after data showed that U.S. homebuilding increased to more than a one-year high in January and that building permits soared to their highest level since 2007.

The greenback came under broad selling pressure earlier amid fresh concerns over the U.S. deficit, which is projected to climb near $1 trillion in 2019 following the announcement of infrastructure spending and large corporate tax cuts.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up at 88.82 by 12:40 GMT, off a three-year trough of 88.16 hit earlier in the day.

The yen and the Swiss franc turned lower, with USDJPY up at 106.28 and with USDCHF rising to 0.9257.

Elsewhere, the euro and the pound were weaker, with EURUSD down at 1.2439 and with GBPUSD declining to 1.4019.

The Australian and New Zealand dollars were also lower, with AUDUSD shedding to 0.7913 and with NZDUSD falling to 0.7377.

Meantime, USDCAD gained 0.31% to trade at 1.2529 after Statistics Canada reported that manufacturing sales fell 0.3% in December, disappointing expectations for a 0.2% rise.