The dollar retained modest gains against major currencies on Monday as the latest data on the US economy offered a mixed picture.

The Commerce Department said December US durable goods orders rose 4.6% from the month before, way ahead of forecasts of a 2% rise.

However fresh housing data from the US fell short of expectations. The National Association of Realtors' said its pending homes sales index fell 4.3% last month.

Traders are also gearing up for a busy economic week in the US with the first estimate of fourth-quarter economic growth out on Wednesday and January nonfarm payrolls readings on Friday.

Meanwhile this week's monetary policy decision from the Federal Reserve is not expected to hold any surprises, with the US central bank expected to keep a dovish stance.

The dollar index, which tracks the greenback against six major currencies, rose to a session high of 79.926 before later slipping back to 79.790, up from 79.762 on Friday.

The dollar was boosted to the day's highs after the durable goods data but momentum later faded as investors recoiled after the housing data.

The euro changed hands at $1.3457 versus $1.3459 on Friday but many analysts the single currency could rise towards the psychologically important $1.35 level as investors cheer the increasingly brighter outlook for the Eurozone and recently strong data from Germany.

Sterling was down 0.04% at $1.5693 after gloomy UK growth data out on Friday.


CJ

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