Dollar weakens on mixed data

The economic data during the week were mixed: US durable goods orders fell 1.2% in October, its second drop this year. Consumer sentiment index by the University of Michigan fell to a reading of 98.5 from October’s 100.7, and purchasing managers indexes’ preliminary estimates showed businesses grew in November at the slowest pace in four months. On the positive side new home sales hit an annual rate of 685 thousand in October, above an expected 627 thousand and the S&P/Case-Shiller national index of house prices rose 6.2% over year in September, the fastest pace in more than three years. Dallas Fed President Kaplan’s comment an interest rate hike “will likely be appropriate, in the near future” supported the dollar. Investors built net short bets against the dollar. As is evident from the Sentiment table, sentiment deteriorated for all major currencies except the British Pound , Canadian dollar and yen . And the Pound joined the Canadian and Australian dollars together with euro as the fourth major currency held net long against the US dollar.