The dollar rose but trimmed gains against most major currencies on Monday after lower-than-expected results came in for US home sales and speculation continued over whether Greece would announce acceptable conditions for is bailout extension.
The National Association of Realtors revealed that existing home sales fell 4.9% to 4.82m units in January from 5.07m in December. Consensus expectations had placed the drop at 0.8%.
Spreadex analyst Connor Campbell added: “Tomorrow should be a different story, with Federal Reserve chair Janet Yellen beginning her two-day testimony, with the likely clarification this should supply surrounding any potential US interest rate hike being of great interest to the markets.”
Meanwhile, investors have been speculating about what conditions Greece will place on its bailout extension proposal.
IG analyst David Madden said: “The left-wing Syriza party is going to have to change its tune if it wants to be granted an extension to the existing bailout that is due to run out at the end of the month. While the clock is ticking for Greece, the single currency will feel the pain.”
The EUR/USD fell 0.41% to 1.1336 on Wednesday while the dollar index, which measures the US currency against a basket of six others, rose 0.3% to $94.69.
The USD/JPY held steady at 118.96 while the GBP/USD increased 0.24% to 1.5431.