2018.04.2414:47:00UTC+00Dollar Losing Ground As Treasury Yields Rise

After several days of gains, the dollar is pulling back against all of its major rivals Tuesday afternoon. The weakness appears to be due to the continued rise in U.S. treasuries yields, which crossed the 3 percent level earlier today. It was the first time yields have hit that level since 2014.

New home sales in the U.S. jumped by much more than expected in the month of March, according to a report released by the Commerce Department on Tuesday.

The report said new home sales soared by 4.0 percent to an annual rate of 694,000 in March after surging up by 3.6 percent to a revised rate of 667,000 in February. Economists had expected new home sales to climb by 1.9 percent.

After reporting a pullback in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing an unexpected rebound in consumer confidence in the month of April.

The Conference Board said its consumer confidence index rose to 128.7 in April from a revised 127.0 in March. Economists had expected the index to dip to 126.1 from the 127.7 originally reported for the previous month.

The dollar has dropped to around $1.2235 against the Euro Tuesday afternoon, from an early high of $1.2181.

German business confidence deteriorated more-than-expected to a 13-month low in April on trade tensions, survey data from the Munich-based Ifo Institute showed Tuesday. The business sentiment index fell to 102.1 from 103.3 a month ago. This was the lowest reading since March 2017, when the reading was 101.3. The score was forecast to drop moderately to 102.8.

France's manufacturing confidence declined in April, survey data from the statistical office Insee showed Tuesday. The manufacturing sentiment index fell to 109 in April from 110 in March. The reading was expected to remain unchanged at 110. Nonetheless, the score was above its long-term average of 100.

The buck has slipped to around $1.3975 against the pound sterling this afternoon, from a high of $1.3917 this morning.

The UK budget deficit decreased to its lowest March level since 2004, the Office for National Statistics said Tuesday. Public sector net borrowing, excluding public sector banks, decreased by GBP 0.8 billion to GBP 1.3 billion in March. This was the lowest March net borrowing since 2004.

The greenback climbed to a 2 1/2 month high of Y109.199 against the Japanese Yen this morning, but has since eased back to around Y108.575.

Producer prices in Japan were up 0.5 percent on year in March, the bank of Japan said on Tuesday. That was in line with expectations and down from the upwardly revised 0.7 percent increase in February.

Japan's leading index improved more than initially estimated in February, latest figures from the Cabinet Office showed Tuesday. The leading index, which measures the future economic activity rose to 106.0 in February from 105.9 in January, which was revised up from 105.6. The flash estimate for February was 105.8.