Dollar Rises Against Major Counterparts Ahead Of Crucial Data

(RTTNews) - The U.S. dollar gained some ground against its major counterparts on Tuesday as traders continued to closely follow the developments on the political front, and awaited some key economic data, including GDP report and inflation readings for more clarity about the Federal Reserve's interest rate trajectory.

The National Association of Realtors said in its report that existing home sales dropped by 5.4% to an annual rate of 3.89 million in June after falling by 0.7% to a rate of 4.11 million in May. Economists had expected existing home sales to slump by 2.9% to a rate of 3.99 million.

The bigger than expected decrease pulled existing home sales down to their lowest level since hitting a rate of 3.88 million last December.

Later in the week, the focus will be on personal income and spending data for June, which includes readings on inflation said to be preferred by the Federal Reserve.

The Commerce Department will release its preliminary estimate of second-quarter U.S. economic growth on Thursday.

Economists expect that GDP grew at a 1.9% annual pace from April through June, following a 1.4% annual growth pace in the first quarter.

The GDP and inflation readings could have a significant impact on the outlook for interest rates, with the Fed currently expected to lower interest rates by a quarter point in September.

On the political front, an AP survey indicated that Vice President Kamala Harris has the backing of at least 2,214 delegates, giving her more than enough support to win the Democratic presidential nomination.

The dollar index, which was struggling a bit in the Asian and European sessions, climbed to 105.54 a few hours into the U.S. session, and remained fairly steady. The index was last seen at 104.45, gaining 0.13%.

Against the Euro, the dollar firmed to 1.0854 from 1.0892. The dollar strengthened to 1.2907 against Pound Sterling, but slipped against the Japanese currency, fetching 155.57 yen a unit, compared to 157.04 yen on Monday.

The dollar firmed to 0.6617 against the Aussie. The greenback strengthened against Swiss franc, fetching CHF 0.8914 a unit, compared to CHF 0.8897 Monday evening. Against the Loonie, the dollar rose to C$ 1.3785 from C$ 1.3758.