Dollar hold gains versus euro after U.S. data

The dollar remained firm to trade around its highest level in eight months versus the euro after U.S. CPI and home sales data.

Inflation data signaled a 0.4 percent increase in June, following a 0.3 percent advance in May.

Another report showed that existing home sales climbed to 5.04 million from a revised of 4.91 million, better than forecasts of 4.99 million.

Last week, Fed Chair Janet Yellen mentioned that interest rates could rise earlier than market anticipation if both inflation and labor market data showed remarkable progress.

The improvement in U.S. data is adding to the case the Fed may raise the borrowing cost earlier than predicted.

The EURUSD resumed its drop where the pair meanwhile is trading around 1.3463 after touching a high of 1.3528 and a low of 1.3458.

The GBPUSD resumed its drop for a fifth consecutive session before BOE minutes tomorrow and U.K. second-quarter GDP later in the week.

A report released today showed that U.K. budget deficit was little changed in June as net borrowing reached 11.4 billion pounds compared with 11.5 billion pounds a year earlier. 

The USDJPY rose for a third straight session to trade around 101.52, compared with the session’s opening of 101.37.