The U.S. dollar turned in a mixed performance against other major currencies on Monday as traders made cautious moves as the second quarter draws to an end. They also reacted to the latest set of economic data from across the globe and tracked news about the spread of the coronavirus.
The dollar index recovered after early weakness, and stayed positive till the end of the session despite paring most of its gains. It was last seen at 97.49 (up marginally) after having rallied to 97.65 from an early low of 97.11.
Contracts to buy previously owned homes in the US fell 5.1% over a year earlier in May of 2020, following a record 33.8% plunge in the previous month due to the coronavirus crisis.
Pending home sales for the month of May rose 44.3%, after falling 21.8% a month earlier.
Against the Euro, the dollar weakened to $1.1290, after data showed an improvement in Euro area economic sentiment. The dollar recovered to $1.1209 by early afternoon but eased to $1.1241 subsequently, losing about 0.17%.
Eurozone economic sentiment improved at the strongest pace on record in June, data published by the European Commission showed. The economic sentiment index climbed 8.2 points to 75.7 in June. However, the reading was below economists' forecast of 80.0.
According to preliminary data from Destatis, German inflation rose unexpectedly in June from a 45-month low, climbing to 0.9% in the month from 0.6% in May. The rate was expected to remain unchanged at 0.6%.
Against Pound Sterling, the dollar was stronger by nearly 0.4% at $1.2291. Earlier in the day, it firmed up to $1.2251. The dollar stayed firm, supported by data showing UK mortgage approvals declined unexpectedly to a record low in May as coronavirus pandemic weighed on housing market activity.
The Japanese Yen was weaker at 107.57 a dollar, compared with 107.22 yen a dollar on Friday.
The Aussie was flat at US$0.6868, after moving between $0.6842 and $0.6891.
The Swiss franc weakened to 0.9511 a dollar, from 0.9477 on Friday evening.
The Canadian' Loonie was stronger by about 0.2% at 1.3660, as against 1.3688 on Friday, thanks to higher crude oil prices. In Canadian economic news, producer prices fell 4.9% in the month of May 2020, over the same month in the previous year.
The industrial product price index increased 1.2% month-over-month in May of 2020, after falling 2.3% in the previous month which was the largest decrease since December of 2008. The raw materials price index in Canada rose 16.4% on a monthly basis in May of 2020, after four straight months of decline,
Meanwhile, the value of building permits in Canada jumped 20.2% from a month earlier to C$ 7.4 billion in May 2020, following a 15.4% plunge in the previous month.
In virus news, many U.S. states are reportedly returning to previous restrictions following a surge in new coronavirus cases in the country last week. As many as 36 states have reported large number of new cases in the past week.
Infection rates remain on the rise in countries such as Brazil and India. Australia today reported 78 new coronavirus cases, the highest single-day rise since April. South Korea has reported new cases today.
The resurgence of the coronavirus outbreak and concerns that the Covid-19 has been badly underestimated curbed optimism for a swift recovery of the global economy.
According to a report from Johns Hopkins University, the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.