Dollar Turns Weak As Traders Await Data

(RTTNews) - The U.S. dollar shed ground against its major counterparts on Monday ahead of a slew of key economic data, including a reading on the PCE price index, which is the Fed's preferred measure of inflation.

The core PCE price index is expected to have climbed 0.3% month-on-month in February, keeping annual reading unchanged at 2.8%.

Data on durable goods orders, consumer confidence and pending home sales are also due this week.

In economic news today, a report from the Commerce Department showed new home sales in the U.S. unexpectedly decreased in the month of February, dropping by 0.3% to an annual rate of 662,000, after jumping by 1.7% to a revised rate of 664,000 in January.

Economists had expected new home sales to surge by 2.9% to a rate of 680,000 from the 661,000 originally reported for the previous month.

The Federal Reserve Bank of Chicago released a report showing an unexpected increase by its index of U.S. national economic activity.

The report said the Chicago Fed National Activity Index rose to a positive 0.05 in February from a revised negative 0.54 in January, with a positive reading indicating above-average economic growth. Economists had expected the index to fall to a negative 0.50 from the negative 0.30 originally reported for the previous month.

The dollar index dropped to 104.14 before recovering slightly to 104.23, still down by about 0.2% from Friday's close.

Against the Euro, the dollar weakened to 1.0838 from 1.0810, and eased to 1.2636 against Pound Sterling. The dollar was flat against the Japanese currency at 151.43 yen a unit, recovering from 151.05 yen.

Against the Aussie, the dollar weakened to 0.6539 from 0.6521. The Swiss franc was weak against the dollar at CHF 0.8994. Against the Loonie, the dollar was weak at C$1.3588 as oil prices climbed higher.