Investing.com – The U.S. dollar edged higher against its rivals as Treasury yields rebounded. The dollar’s strength came even as U.S. housing data continued to indicate wobbles in the economy and growing expectations of a Federal Reserve rate cut intensified.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.15% to 96.21.
The U.S. yield rose above the key 2.40% level as risk appetite returned, despite increasing expectations the Fed’s next move will likely be a rate cut as soon as September. But the rise in yields was capped by weak housing data, keeping a lid on the greenback’s advance.
U.S. housing starts , the second-biggest monthly decline since November 2016, the Commerce Department said.
Analysts said multifamily homebuilding was strong, but acknowledge that the data did little to point to a positive background for first-quarter economic growth.
“Of note in the details, multifamily was strong coming in at 17.8% MoM,” BMO said in a note. “Q1 was shaping up to be a weaker quarter for the U.S. and it appears that is clearly the case for construction.”
Building permits, a key indicator of U.S. housing production, , the second-straight monthly decline, denting sentiment on homebuilders even as analysts touted signs of green shoots in homebuying demand.
Meanwhile, rose 0.14% to $1.3221 as U.K. lawmakers backed a move on Monday for parliament to take control over the Brexit process from U.K. Prime Minister Theresa May.
U.K. lawmakers will put forward a range of options over the path of Brexit on Wednesday to establish which, if any, may win majority support to break the current Brexit impasse.
Any option that wins majority support will not be legally binding and there is no guarantee that the EU will back any amendments.
If parliament fails to back Theresa May’s withdrawal deal by the extended Brexit deadline of April 12, the U.K. will leave the EU without a deal.
U.K. media outlets reported that a third vote on May’s Brexit deal did not have sufficient support for it to be approved for a vote today, with some speculating a vote could be slated for Thursday.
fell 0.26% to $1.1282 and fell 0.16% to C$1.3378.
rose 0.45% to Y110.45 as an uptick in demand for risk assets dented demand for the safe-haven yen.
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