Week Starts with Correction for US Dollar

The US dollar fell against its major peers today, correcting after the last week’s huge jump. Economic data from the United States added to the pressure on the US currency.

New home sales were at the seasonally adjusted annual rate of 468,000 in September. It was not only below the previous month’s revised value of 529,000 but also missed the analysts’ projection of 546,000.

The dollar has pulled back as a result of the disappointing (at least to dollar bulls) data and profit-taking. Considering that the previous week was the best week for the currency since May, today’s small correction does not threaten the upward momentum of the greenback. What may change the trend is this week’s monetary policy meeting of the Federal Reserve. No changes to the policy are expected, but, as usual, comments of the central bank will be closely watched by market participants.

EUR/USD gained from 1.1005 to 1.1047 as of 18:39 GMT today. GBP/USD rallied from 1.5307 to 1.5358 while USD/JPY went down from 121.47 to 121.06, touching the low of 120.66 intraday.

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