Data supports US dollar

The US dollar was stronger versus the euro and the yen on the news that wholesale prices were up more than expected in the United States and on an unexpected expansion of manufacturing in the New York region in April, lowering the chances of a large interest rate cut from the Federal Reserve this month.
The New York Federal Reserve reported that manufacturing in the region was at 0.6 in April, up from minus 22.2 in March in the face of expectations that it had actually contracted further.
Meanwhile, the Labor Department reported that wholesale prices were up by 1.1 percent in March, mostly on food and energy prices since core inflation that excludes those categories only rose by 0.2 percent.
However, after crude oil prices soared to a new record above $113 per barrel, the greenback lost some of its gains on the euro.
At just before 11 a.m. in New York the dollar traded at $1.5802 to the euro while it took ¥101.3800 to buy a dollar.
The pound dropped to an all-time low versus the euro at 80.64p after the Royal Institution of Chartered Surveyors reported that the number of agents and surveyors reporting a drop in house prices was up in March.
The new data shows that 78.5 percent of agents and surveyors reported that housing prices fell in March versus 65.7 percent who reported falling rather than advancing prices in February.
The news brought with it a greater chance of more interest rate cuts in the UK.
At last report in New York, the pound was trading at 80.46p to the euro while it cost $1.9640 to buy a pound.
The surge in crude oil prices to a new record sent the Canadian dollar higher versus the greenback, to C$1.0182 to the dollar at nearly 11 a.m. in New York.