Housing data in the United States and the European economy under the microscope

The dollar came close to the peak of the last 22 months against its peers on Wednesday, after the good US housing data eased fears of a slowdown in the world's largest economy.

The dollar index versus a basket of six major currencies rose to 97,602, after hitting 97,777 overnight, its highest level since June 2017.

Data showing that sales of new single-family homes in the United States peaked at almost a year and a half in March Tuesday added to positive retail sales and exports.

The euro, which holds the highest weighting within the dollar index, was slightly lower at $ 1.1219 after losing 0.25% the previous day.

"The European economy looks particularly weak compared to the US economy, which highlights the weakness of the euro," said Takuya Kanda, chief executive of Gaitame.Com Research.

"The United States should now experience sustained growth in the first quarter, strengthening the strength of the dollar against the euro."

First quarter US GDP data released on Friday may reinforce the statement that while the current period of global expansion is in its final stages, the United States is on a stronger footing relative to the other major economies. savings.

The dollar remained stable at 111.885 yen after slight losses overnight, penalized by a decline in long-term treasury yields.

The Australian dollar was little changed, at 0.7097 dollars, after a loss of 0.5% the day before the domestic inflation report under high surveillance.

The Australian consumer price index (CPI) data is expected at 01:30 GMT and badysts polled by Reuters are expecting a core inflation of about 1.7%, lower than the target range of 2 to 3% of the central bank.

The Canadian dollar struggled near the lowest level in four weeks, rising to $ 1.3443 against the greenback overnight, while the Bank of Canada (BoC) would drop the wording to see a further rise in interest rates.

Canada's central bank is expected to maintain its key rate at a policy meeting next Wednesday. A poll by Reuters showed that the central bank was following its policy until early 2020 at the earliest.