Dollar Firms on Strong US Economic News

Economic Indicators - The dollar index (DXY00) increased by +0.26%, supported by better-than-expected US economic reports on December capital goods new orders, housing starts, and manufacturing production [1] - US December capital goods new orders (nondefense ex-aircraft and parts) rose by +0.6% month-over-month, exceeding expectations of +0.3% [3] - US December housing starts rose by +6.2% month-over-month to a five-month high of 1.404 million, surpassing expectations of 1.304 million [3] - US December building permits increased by +4.2% month-over-month to a nine-month high of 1.448 million, also above expectations of 1.400 million [3] - US January manufacturing production rose by +0.6% month-over-month, stronger than the expected +0.4% and marking the largest increase in 11 months [4] Mortgage Applications - US MBA mortgage applications rose by +2.8% in the week ended February 13, with the purchase mortgage sub-index down by -2.7% and the refinancing mortgage sub-index up by +7.1% [2] - The average 30-year fixed-rate mortgage fell by -4 basis points to 6.17% from 6.21% in the prior week [2] Currency Movements - EUR/USD decreased by -0.32%, with the dollar's strength impacting the euro, particularly after reports of ECB President Christine Lagarde's potential early departure [5] - USD/JPY increased by +0.70%, as the yen weakened due to a rise in the Nikkei Stock Index and stronger dollar [6]