Dollar falls on weak U.S. data: April 27, 2016

Market Review - 26/04/2016 23:16GMT 

Dollar falls on weak U.S. data

The greenback dropped against majority of its peers on Tuesday as the release of weaker-than-expected U.S. economic data signaled that the Federal Reserve would take a dovish stance at its rate announcement later this week. 

The U.S. Commerce Department said that total durable goods orders rose 0.8% last month, compared to expectations for a increase of 1.8%. February's orders were revised down to a decrease of 3.1% from a previously reported 3.0% decline. 

Versus the Japanese yen, dollar continued to edge lower in Asia and hit a session low at 110.67 in early European morning, however, price pared its losses and rebounded to 111.17 at New York open before retreating to 110.86 on weak durable goods data. Later, the greenback rose once more to an intra-day high at 111.47 at New York afternoon. 

The single currency traded sideways in Asia and gained to 1.1300 in European morning before rallying to an intra-day high at 1.1340 in New York morning on dollar's broad-based weakness. Later, price pared its gains and retreated to 1.1280 on profit-taking. 

The British pound traded with a firm bias in Asia and gained to 1.4572 in European morning as fears of a Brexit eased. Cable continued its ascent and rallied to a fresh 12-week high at 1.4640 in New York morning, however, price pared its gains and retreated to 1.4575 after a poll showed "Out" campaign still leading. 

ICM poll shows 44% of Britons wud vote to remain in EU, 46% to leave. 

In other news, German lawmakers of Merkel's conservatives said 'Britain will have to face consequences in case of Brexit as there will be no special treatment n bilateral economic agreements will be hard to agree.' 

Data to be released on Wednesday: 

New Zealand imports, exports, trade balance, Australia CPI, Japan all industry activity index, Germany Gfk consumer confidence, Swiss UBS consumption indicator, France consumer spending, Italy consumer confidence, business confidence, U.K. GDP, CBI distributive trades survey, U.S. mortgage application, goods trade balance, pending home sales and Fed's interest rate decision.