Dollar Trading Mixed As Weekend Approaches

The dollar is turning in a mixed performance against its major rivals Friday afternoon. The buck is down against its major European rivals, but is gaining ground against the Japanese Yen.

EU leaders have reached an agreement on migration, which should help avert a political crisis in Germany. Chancellor Angela Merkel’s coalition government was under strain over migrant policy.

A report released by the Commerce Department on Friday showed personal income in the U.S. increased in line with economist estimates in the month of May, although the report also showed weaker than expected growth in personal spending.

The report said personal income climbed by 0.4 percent in May after edging up by a downwardly revised 0.2 percent in April.

Economists had expected income to rise by 0.4 percent compared to the 0.3 percent increase originally reported for the previous month.

Meanwhile, the Commerce Department said personal spending rose by 0.2 percent in May after climbing by a downwardly revised 0.5 percent in April.

Personal spending had been expected to increase by 0.4 percent compared to the 0.6 percent growth originally reported for the previous month.

Chicago-area business activity unexpectedly grew at a faster rate in the month of June, according to a report released by MNI Indicators on Friday.

MNI Indicators said its Chicago business barometer climbed to 64.1 in June from 62.7 in May, with a reading above 50 indicating growth. Economists had expected the index to drop to 60.0.

The dollar has dropped to around $1.1665 against the Euro Friday afternoon, from an early high of $1.1563.

Eurozone inflation increased in June on food and energy prices, flash data from Eurostat showed Friday. Inflation rose to 2 percent in June, in line with forecast, from 1.9 percent in May. The European Central Bank’s targets ‘below, but close to 2 percent’.

Germany’s retail sales decreased for the first time in seven months in May, figures from Destatis showed Friday. Retail sales decreased unexpectedly by 1.6 percent annually in May after climbing 1 percent in April. Sales were forecast to climb 1.9 percent.

Germany’s unemployment rate remained at record low in June, reports said citing the Federal Labor Agency on Friday. The jobless rate held steady at 5.2 percent in June, the lowest since German reunification in 1990. The rate also matched economists’ expectations.

Germany’s import prices increased for the second straight month in May, data from Destatis showed Friday.

Import prices climbed 3.2 percent year-over-year in May, well above the 0.6 percent rise in April.

Data also showed that export prices grew 1.3 percent annually and by 0.5 percent monthly in May.

France’s consumer price inflation accelerated in June on energy and food product prices, provisional estimate from the statistical office Insee showed Friday. Consumer price inflation rose to 2.1 percent in June from 2 percent in May. The rate came in line with expectations. Final data is due on July 12.

The buck has fallen to around $1.3190 against the pound sterling Friday afternoon, from a high of $1.3068 this morning.

The UK economy expanded more than the previous estimate in the first quarter, data published by the Office for National Statistics showed Friday. Gross domestic product grew 0.2 percent sequentially in the first quarter, which was revised upward by 0.1 percentage points, reflecting improvement in construction output.

UK mortgage approvals increased to a 4-month high in May, the Bank of England said Friday. The number of loans approved for house purchases increased to 64,526 in May from 62,941 in April. This was the highest since January and above the expected level of 62,200.

UK consumer sentiment weakened in June largely on weak economic outlook, reports said citing survey data from market research group GfK, on Friday. The consumer confidence index fell to -9 in June from -7 in May. The score was forecast to remain unchanged at -7.

The greenback has climbed to around Y110.850 against the Japanese Yen Friday afternoon, from a low of Y110.374 this morning.

Japan’s industrial production decreased at a slower-than-expected pace in May, preliminary figures from the Ministry of Economy, Trade and Industry showed Friday.

Industrial production dropped a seasonally adjusted 0.2 percent month-over-month in May, reversing a 0.5 percent increase in April. It was the first decline in four months. Economists had expected a 1.0 percent fall for the month.

Japan’s housing starts grew unexpectedly in May, data from the Ministry of Land, Infrastructure, Transport and Tourism revealed Friday. Housing starts advanced 1.3 percent annually, faster than the 0.3 percent increase seen in April. Housing starts were forecast to drop 5.7 percent in May.

Japan’s unemployment rate decreased in May to the lowest level in nearly twenty six years, data from the Ministry of Internal Affairs and Communications showed Friday. The seasonally adjusted jobless rate dropped to 2.2 percent in May from 2.5 percent in April.

Japan’s consumer confidence weakened marginally in June, survey data from the Cabinet Office showed Friday. The seasonally adjusted consumer confidence index dropped to 43.7 in June from 43.8 in May. Meanwhile, the index was forecast to remain stable at 43.8.

The material has been provided by InstaForex Company –

Leave a Reply

Your email address will not be published. Required fields are marked *