1 month ago
Forex

Dollar Rises, Dodges Weak Factory Orders Data

Investing.com - The dollar advanced against a basket of major currencies on Monday, shrugging off data showing a slip in

Investing.com - The dollar advanced against a basket of major currencies on Monday, shrugging off data showing a slip in U.S. factory orders.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.27% to 95.55.

Factory goods orders fell 0.6% amid lower demand for machinery, the Commerce Department said on Monday. That missed economists' forecasts for a rise of 0.3%.

The weaker-than-expected factory orders good data did little to keep a lid on the greenback as Friday's bullish job numbers reaffirmed the economy remained on solid footing.

The pound gave up some of its gains against the greenback even as U.K. newspaper The Sun reported that goods shipped to Britain from the EU could be waved through without checks in the event of a no-deal Brexit.

GBP/USD fell 0.28% to $1.3047, while EUR/USD lost 0.20% to $1.1431.

Still, the Irish backstop issue remains the overarching factor weighing on sterling. The EU has showed little sign its willing to be flexible on the Irish backstop, a measure which seeks to prevent a hard border between Northern Ireland and the Republic of Ireland.

Elsewhere, improved sentiment on risk dented safe-haven demand, stifling the yen.

USD/JPY rose 0.38% to Y109.30.

USD/CAD rose 0.26% to C$1.3132 as falling oil prices weighed on loonie, strengthening the pair.