The U.S. dollar may also be falling ahead of weak economic expectations. Analysts project the U.S. economy shrank an average 1.8% over the first quarter ahead of the June 25 report. According to economists’ median estimates, U.S. factory orders for durable goods declined 0.1% in May. Observers also anticipate Tuesday’s new home sales for May rose 1.4%, below the 6.4% gain for April. [The Allure of Dollar ETFs]
“It’s a combination of the still very dovish Fed and yet still pretty decent underlying economic data,” Peter Kinsella, a senior currency strategist at Commerzbank AG, said in the article. “It’s the classic Goldilocks scenario. The data’s coming in, it’s not too hot, it’s not too cold, and people sell the dollar and trade it with a benign neglect.”
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Max Chen contributed to this article.