Get 40% Off
🎁 Free Gift Friday: Copy Legendary Investors' Portfolios in One ClickCopy for Free

Dollar index holds steady after positive U.S. data

Published 12/23/2016, 10:51 AM
Dollar little changed vs. rivals, U.S. data supports

Investing.com - The dollar held steady against the other majors currencies on Friday, after the release of positive U.S. data supported optimism over the strength of the U.S. economy.

Trading volumes were expected to be thin this week as trader were beginning to unwind positions ahead of the Christmas holiday.

EUR/USD was up 0.13% at 1.0450.

Th U.S. Census Bureau said new home sales rose 5.2% to 592.000 units in November, beating expectations for a 2.1% increase to 575.000.

In addition, the University of Michigan said its consumer sentiment index hit 98.2 this month, up from a previous estimate of 98.0. Analysts had expected the index to remain unchanged in December.

The greenback has also remained broadly supported since the Federal Reserve concluded its policy meeting last week by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

Elsewhere, GBP/USD slipped 0.15% to seven-week lows of 1.2267.

Earlier Friday, the U.K. Office for National Statistics said gross domestic product grew at a rate of 0.6% in the third quarter, up from a previous estimate of 0.5% and above expectations for a growth rate of 0.5%.

A separate report showed that the U.K. current account deficit widened to £25.5 billion in the last quarter from £22.1 billion in the second quarter, whose figure was revised from a previously estimated deficit of £25.9 billion.

Analysts had expected the current account deficit to widen to £27.5 billion in the third quarter.

USD/JPY fell 0.25% to 117.26, while USD/CHF edged up 0.08% to 1.0261.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.76% at 0.7163 and with NZD/USD dropping 0.58% to 0.6865.

Meanwhile, USD/CAD gained 0.44% to a five-week high of 1.3544.

Statistics Canada said GDP fell 0.3% in October, compared to expectations for a 0.1% rise.

Canada’s economy grew at a rate of 0.4% in September, up from a previous reading of 0.3%.

The commodity-related Canadian dollar was also affected by a drop in oil prices on Friday, following news of increasing output from Libya.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 103.02, just off Tuesday’s fresh 14-year highs of 103.62.

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.