Euro falls to three-week low against dollar

Euro fell against the dollar away from December 17, 2017 highs to the lowest since February 9, following earlier data from the euro zone and the US. 

Federal Reserve Chair Jerome Powell is testifying on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, today. 

As of 04:12 GMT, EUR/USD fell 0.61% to 1.2242 from the opening of 1.2317, with a three-week low at 1.2222, and a session-high at 1.2346. 

Earlier German data showed consumer prices rose 0.5% in line with expectations, compared to a 0.7% dip in January, while Spanish consumer prices accelerated to 1.1% from 0.6% in January, beating expectations of 0.9%. 

As for the whole zone, M3 money supply rose 4.6% with no change in January as expected, while private loans also rose 2.9% as expected. 

Deutsche Bundesbank President Jens Weidmann spoke about the Bundesbank's Annual Report, in Frankfurt, where he called for gradual return to normal monetary policy as stable growth continues and prices increase. 

 In his testimony earlier today, Powell expressed admiration for former Chair Janet Yellen's work to strengthen the economy and normalize the balance sheet, lauding her for helping to smooth out the transition and provide continuity in monetary policy. 

Powell expected the Fed to continue tightening monetary policy gradually, while pointing to economic outlook as strong, asserting the importance of balancing the push of inflation just towards the target and not beyond it, adding that labor strength will underpin spending and income. 

Earlier US data showed durable goods orders fell 3.7% in January, compared to a 2.8% rise in December, and missing expectations of a 2.4% drop, while core orders also fell 0.3%, compared to a 0.7% rise in December and missing forecasts of 0.4% rise. 

The goods trade deficit widened while wholesale inventories rose past expectations in January, as the House Price index slowed more than expected in December. 

The Richmond Manufacturing Index rose to 28 in February from 14 in January, beating expectations of 15, while the CB consumer confidence survey rose to 130.8 in February from 124.3 in January, beating forecasts of 126.2.