The US dollar weakened vs. most major currencies as US equities reached their highest point this year helping increase risk appetite. Data showed that personal income fell 1.3% in June, which is down from a revised 1.3% the previous month. Personal spending increased 0.4% in June, beating forecasts of a 0.3% rise. Pending home sales also helped investor risk appetite as it increased 3.6% in June over the previous month, beating forecasts of 0.7%.
The euro strengthened against the dollar with an increase in risk appetite. The producer price index in the Eurozone rose 0.3% in June from the previous month, though it was down 6.6% from the previous year.
The British pound rose near a nine-month high against the dollar as positive data helped increase risk appetite. Domestic house prices rose 1.3% in July, which was much better than forecasts of a 0.2% increase. Manufacturing also expanded for the first time in more than a year in July as it climbed to 50.8 from a revised 47.4. Any number above 50.0 indicates expansion.
The Japanese yen fell vs. most major currencies as recent gains in equities have encouraged investors to buy higher-yielding assets.
The Canadian dollar weakened against the dollar for the first time in four days as investors speculated gains may be overdone.
The Australian and New Zealand dollar both strengthened against the dollar as investors bought higher-yielding assets amid optimism about the global economy. Retail sales in Australia increased 2.0% in the second quarter, which beat forecasts of a 1.3% increase. The house price index in Australia rose 4.2% over the previous quarter, which beat forecasts of a 2% rise. The data helped boost the Aussie, though it pared gains after the Reserve Bank of Australia left interest rates unchanged at 3.00%.
