FOREX-Dollar clings to modest gains as strong U.S. data lends support

[ASFN Admin]

Business activity in the United States in February unexpectedly rebounded to an eight-month high, increasing to 50.2 from a final reading of 46.8 in January, according to a survey. "Today’s PMI releases show a large portion of the U.S. economy is still proving more resilient than expected, particularly the services sector, but the housing market remains challenged as evidenced by the surprise decline in existing home sales," said Erik Nelson, macro strategist at Wells Fargo Securities in London. Nelson noted a dichotomy between the leading indicators from the U.S. economy, showing a recession still looming and lagging indicators pointing to still-solid demand.

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