2018.04.2314:24:00UTC+00Dollar Extending Recent Gains

The dollar is rising against all of its major rivals Monday afternoon, extending its gains from the last few sessions. Investors were encouraged by the release of the better than expected existing home sales data this morning and are looking forward to a number of important economic reports later this week.

A report released by the National Association of Realtors on Monday showed existing home sales in the U.S. increased by much more than expected in the month of March.

NAR said existing home sales climbed by 1.1 percent to an annual rate of 5.60 million in March after surging up by 3.0 percent to a rate of 5.54 million in February. Economists had expected existing home sales to edge up by 0.2 percent.

New home sales and consumer confidence data are set to be released tomorrow morning, while durable goods orders, weekly jobless claims and international trade are slated for Thursday. GDP and consumer sentiment are also scheduled for Friday.

The dollar has climbed to over a month and a half high of $1.2210 against the Euro Monday afternoon, from an early low of $1.2289.

The euro area government deficit narrowed in 2017, data published by Eurostat showed Monday. The government deficit to GDP ratio fell to 0.9 percent from 1.5 percent in 2016. The government deficit totaled EUR 98.92 billion compared to EUR 159.01 billion last year.

Eurozone private sector logged a moderate expansion in April, amid signs of weaker growth of demand and supply constraints. The composite output index remained unchanged at 55.2 in April, flash survey results from IHS Markit showed Monday. The score was forecast to drop to 55.0.

Germany's private sector grew solidly at the start of the second quarter, survey results from IHS Markit showed Monday. The flash composite output index improved unexpectedly to 55.3 in April from 55.1 in March. The reading was forecast to fall to 54.8.

France's private sector activity expanded at a faster pace in April, flash survey data from IHS Markit showed Monday. The composite output index rose to 56.9 in April from 56.3 in March. The expected reading was 55.9.

The buck has risen to over a 1-month high of $1.3940 against the pound sterling Monday afternoon, from a low of $1.4030 this morning.

UK household finances deteriorated at the start of the second quarter, survey data from IHS Markit showed Monday. The household finance index remained unchanged at 43.2 in April. A score below 50 suggests a moderate deterioration in household finances with the rate of decrease broadly in line with that seen over the last 12 months.

The greenback has broken out to over a 2-month high of Y108.575 against the Japanese Yen this afternoon, from an early low of Y107.726.

The manufacturing sector in Japan continued to expand in April, and at a faster rate, the latest survey from Nikkei revealed on Monday with a PMI score of 53.3. That's up from 53.1 in March, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.