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U.S. Leading Economic Index continues to rise in June

The Leading Economic Index (LEI) for the U.S. continued to rise in June. The underlying components imply that the hard data might be closing the gap with the weak or expectation-related data, noted Wells Fargo in a research report. The Leading Economic Index rose 0.6 percent in June, its largest monthly rise since December 2014. The June rise also marks the tenth straight month in which the index rose higher.

Eight of the components contributed to the headline figure, while jobless claims was the only component that was a drag on the index, subtracting 0.05 percentage points off the index. Average hours worked came in flat on the month.

ISM new orders added 0.17 percentage points to the headline index, while the interest rate spread contributed 0.13 percentage points. The building permits component positively contributed 0.21 percentage points to the headline figure, its largest contribution since November 2015. Permits for future construction rose 7.4 percent in June, while housing starts were up 8.3 percent. The housing rebound is getting back on trace ad is likely to continue to boost, added Wells Fargo.

At 16:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -60.1737. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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