Forexpros – The dollar dipped against major global currencies on Thursday after investors, weary of interpreting Federal Reserve Chairman Ben Bernanke’s reserved testimony before Congress, opted for the yen and Asian equities, the latter of which rose on solid U.S. earnings.
In Asian trading on Thursday, EUR/USD was flat at 1.2285.
Fed Chairman Bernanke wrapped up two days of congressional testimony, reiterating past policy stances that the Fed remains ready to jolt the economy via monetary stimulus measures if needed, but made no real hint if that need would arise any time soon.
The news sent the dollar rising initially as did solid housing data out of the U.S.
Housing starts jumped 6.9% in June to a seasonally-adjusted annual rate of 760,000 units, a near four-year high and well above expectations for a gain of 5.2% to 745,000 units.
Housing starts for May were revised up to 711,000 units from a previously reported 708,000 units.
Building permits issued in June dropped 3.7% to a seasonally adjusted 755,000, worse than expectations for a decline of 2.4% to 765,000.
Building permits issued in May totaled 784,000.
Housing threw the U.S. economy into the worst downturn since the Great Depression and continues to weigh on its recovery, and signs of recovery are often bullish for the dollar.
They’re also bullish for stocks, sparking a risk-on mentality that sends investors selling greenbacks to chase equities and higher-yielding currencies.
Demand for stocks rose in Asia, meanwhile, also on news many big tech companies in the U.S. surprised on the upside with second quarter profits.
Ongoing concerns in Europe that Germany remains reticent to back proposals to fight the debt crisis supported by other countries sparked safe-haven demand, the yen especially.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.02% at 1.5651.
The dollar was down against the yen, with USD/JPY trading down 0.16% at 78.67, and down against the Swiss franc, with USD/CHF trading down 0.03% at 0.9776.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.03% at 1.0099, AUD/USD up 0.07% at 1.0369 and NZD/USD down 0.07% at 0.7996.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% at 83.06.
Later Thursday, the U.S. will release data on initial jobless claims as well as numbers on existing home sales and manufacturing activity in the Philadelphia area.
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