Dollar drops on lackluster US data
The dollar Wednesday retreated against other major currencies following a string of mostly lackluster US economic data.
Data for October showed a slight increase in US consumer spending, a rise in durable goods orders and a modest increase in new-home sales. The Labor Department reported higher jobless claims for the week ending November 22.
Trader Valeria Bednarik said “weak data” and profit taking encouraged selling of the US currency.
“A stack of US data ahead of the long Thanksgiving weekend ended up with a weaker greenback on Wednesday,” Bednarik said in a note on the website FXStreet.
The drop in the dollar came as an official with the European Central Bank suggested any stimulus likely will not be enacted before the first quarter of 2015.
“During the first quarter of next year we will be able to gauge better… (whether) we will have to consider buying other assets, including sovereign bonds in the secondary market,” said ECB deputy president Vitor Constancio.
ECB chief Mario Draghi last week had signaled readiness to act quickly to deter deflation, sparking stimulus hopes.
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