The dollar weakened against its competitors on the eve of US statistics release

20.10.2015

On Tuesday, the dollar declines against other major currencies, as investors are now preparing for the US data on housing, after mixed reports, released last week, did not bring any clarity in terms of a rate hike in the United States.

The dollar weakened against the euro; EUR/USD pair rose 0.50% to 1.1383.

The US currency remains under pressure after a series of national reports outlined a mixed picture of the economy last week and made an additional uncertainty about when the Fed will start raising interest rates.

Meanwhile, the single currency has strengthened as investors focused on the upcoming week meeting of the European Central Bank amid speculation that it may initiate the plan to expand its incentive program.

Dollar is steady against the yen; USD/JPY pair is at 119.56.

Market sentiment is still depressed after Monday's data showed that China's economic growth slowed to 6.9% in the third quarter, from 7% in the previous quarter. GDP growth is the lowest since 2009.

The dollar fell against the pound and the Swiss franc; GBP/USD pair strengthened by 0.15% to 1.5488, and USD/CHF pair fell 0.74% to 0.9497.

Swiss data released earlier showed that the trade surplus widened in September to 3.047 billion Swiss francs, down from a revised 2.862 billion Swiss francs in the previous month. Analysts predicted that the trade surplus will decline in the last month to 2.510 billion Swiss francs.

The Australian and New Zealand dollars rose; AUD/USD rose 0.61% to 0.7291, and the NZD/USD pair strengthened by 0.71% to 0.6840.

Earlier on Tuesday, the minutes of the October policy meeting of the Australian Reserve Bank showed that the depreciation of the national currency and low interest rates have helped to restore balance to the economy.

Meanwhile, the USD/CAD pair has weakened 0.10% to 1.3005.

On Monday, in Canada, the first time in nearly a decade there was elected Liberal government, which caused uncertainty in the economic outlook.

The USD index, which measures the strength of the US dollar against a basket of six major currencies, went down 0.38% to 94.65.

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