The dollar index retreated on Tuesday after a host of economic data releases indicated the U.S. economy remains resilient and may not be close to a recession, while the euro strengthened after comments from European Central Bank (ECB) President Christine Lagarde.
in May, although the prior month was revised down, indicating some caution remained among businesses for new capital investment.But the dollar pared declines somewhat after a separate reading on consumer confidence from the Conference Board showedAdditional data on single-family new home sales in May and home prices in April also indicated the housing market has been able to weather rising interest rates from the U.S. Federal Reserve.
Morgan Stanley said on Tuesday it was now expecting the Fed to hike its key interest rate by 25 basis points in July, from an earlier estimate of a pause, raising its terminal rate forecast to 5.375%.should the currency continue to depreciate. The euro was up 0.49% to $1.0957 after climbing to $1.0976, the highest since June 22, after comments from ECB officials.that could linger for some time, and "it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached".inflation is easing enough that would enable the central bank to pause their interest rate hikes.
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