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Dollar Set to Snap Three-Week Win Streak as Sterling, Euro Gain

Investing.com - The U.S. dollar looks set to snap a three-week winning streak as downbeat consumer sentiment data did little to help the greenback offset losses against the euro and sterling.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.25% to 96.57.

The Michigan consumer sentiment index fell to a reading of 96.9, well below expectations for a reading of 98.1, following two-straight months that saw gains above expectations, according to economist forecasts compiled by Investing.com.

The data is unlikely to prompt the Federal Reserve to divert from its wait-and-see approach to monetary policy.

"These numbers won't alter the FOMC's view that a patient approach is warranted," Action Economics said.

A rise in the pound and euro also stifled the dollar's attempt at clawing back losses.

GBP/USD rose 0.20% to $1.3080 on reports of progress on talks between U.K. Prime Minister Theresa May and opposition leader Jeremy Corbyn. The pound was also given a second wind on expectations that holding a second referendum on Brexit may be put to a vote in parliament.

This comes just days the EU granted a delay to Brexit until October 31 to allow ample time for May to hash out a deal that lawmakers are willing to back.

EUR/USD climbed 0.43% to $1.1298 and USD/JPY rose 0.34% to $112.03, with the latter pair boosted by a fall in the yen as risk appetite returned on Wall Street following mostly upbeat earnings from major banks.

USD/CAD fell 0.41% C$1.3329 as rising oil prices propped up the loonie.

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