FX round-up: Dollar falls, euro jumps amid weak US housing data

LONDON (ShareCast) - The dollar fell against most of its major rival currencies on Monday as February's US existing-home sales came in weaker than expected, while last week's comments from the Federal Reserve continued to affect market sentiment. The Fed downgraded its forecasts for inflation and growth last week, convincing investors that interest rates will rise slower than previously expected.

Meanwhile, the National Association of Realtors reported that US existing-home sales rose 1.2% to 4.88m units last month from 4.82m in January, missing the consensus forecast for a 1.7% rise.

The EUR/USD advanced 1.04% to $1.0932 while the dollar index, which measures the US currency against a basket of six others, declined 0.58% to $97.49.

IG (LSE: IGG.L - news) analyst David Madden said: "The euro is edging higher as Greece sits down with Germany hoping to repair its tattered relationship.

"After a lot of big talk from the Greek finance minister, Yanis Varoufakis, Alexis Tsipras has to play good cop and hammer out a deal with the nations' creditors." Data showing a rise in Eurozone consumer confidence also helped the single currency to new move higher.

The USD/JPY fell 0.32% to 119.65 while the GBP/USD dropped 0.22% 1.4921.

Madden added: "The Eurozone is already experiencing deflation and fear of this spreading to the UK is putting pressure on the pound."