Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Dollar little changed after U.S. GDP miss

Published 01/30/2015, 08:41 AM
Updated 01/30/2015, 08:41 AM
Dollar shows little reaction to GDP report, more data ahead

Investing.com - The dollar was little changed against the other major currencies on Friday, after data showed that the U.S. economy grew at a slower pace than expected in the fourth quarter and as investors eyed additional U.S. reports to be released later in the day.

In a report, the Bureau of Economic Analysis said that U.S. gross domestic product rose 2.6% in the last quarter of 2014, down from a previous estimate of 3.0% and from a growth rate of 5.0% in the three months to September.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 94.87, still close to last Friday's more than 11-year highs of 95.77.

EUR/USD edged up 0.08% to 1.1326 after Eurostat reported that the annual rate of euro zone inflation fell by 0.6% in January, after a 0.2% slip in December. Economists had expected an annual decline of 0.5%.

Core inflation, which strips out volatile measures such as food and energy costs, rose 0.5% on a year-over-year basis, but was still well below the European Central Bank's target of close to, but just under 2%.

In a separate report, Eurostat said the euro zone’s unemployment rate ticked down to 11.4% in December from 11.5% the previous month, confounding expectations for the rate to remain unchanged.

Earlier Friday, official data showed that French consumer spending increased by 1.5% in December, exceeding expectations for a 0.2% rise, while a separate report showed that Spanish GDP rose 0.7% in the fourth quarter of 2014, above expectations for a 0.6% gain.

In Germany, retail sales gained 0.2% last month, official data showed, disappointing expectations for a 0.3% rise.

The pound was almost unchanged, with GBP/USD at 1.5066 after data showed that U.K. net lending to individuals fell to £2.2 billion in December from a revised £3.1 billion in November.

Data also showed that U.K. mortgage approvals rose by 60,280 last month after a downwardly revised 58,960 increase in November, compared to expectations for a 59,000 rise.

In addition, the U.K. Gfk consumer confidence index improved to 1 this month from minus 4 in December, compared to expectations for a reading of minus 2.

Elsewhere, USD/CHF held steady at 0.9234, while USD/JPY dropped 0.60% to 117.58.

A preliminary report earlier showed that Japanese industrial production rose 1.0% in December, confounding expectations for an increase of 1.3%, while a separate report showed that household spending in Japan rose 0.4% last month, below expectations for a 0.3% gain.

In Switzerland, the KOF Economic Research Agency said that its economic barometer fell to 97.0 this month from 98.8 in December, whose figure was revised from a previously estimated reading of 98.7. Analysts had expected the index to decline to 97.5 in January.

The Australian and New Zealand dollars were mixed, with AUD/USD adding 0.15% just off five-and-a-half year lows at 0.7770, while NZD/USD fell 0.28% close to a three-year trough at 0.7247.

The Canadian dollar hit fresh six-year lows, with USD/CAD climbing 0.89% to 1.2727 after Statistics Canada said the country's GPD fell 0.2% in November, compared to expectations for a 0.1% downtick and after a 0.3% gain in October.

Later in the day, the U.S. was to release reports on business activity in the Chicago region and revised data on consumer sentiment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.