Breaking News

Forex - Dollar gains on weak U.S. output data, fiscal cliff fears

ForexNov 16, 2012 03:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - The dollar rose against the world's major global currencies on Friday after U.S. industrial production figures fell short of expectations and diminished demand for higher-yielding assets such as stocks.

In U.S. trading on Friday, EUR/USD was down 0.40% at 1.2730.

U.S. industrial production fell unexpectedly in October, the Federal Reserve reported Friday.

Industrial production fell 0.4% following a gain of 0.2% in September, whose figure was revised down from 0.4%.

Analysts had expected industrial production to rise 0.2% in October, and the disappointment sparked a risk-off trading session that fueled dollar demand.

Superstorm Sandy disrupted business for a good chunk of the northeastern U.S. last month, which reflected in the numbers.

A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% in September, missing expectations for an increase to 78.3%.

Elsewhere in the U.S., lawmakers met with President Barack Obama and expressed optimism afterwards that they will be able to steer the U.S. economy away from the fiscal cliff, a combination of tax hikes and spending cuts due to kick in at the same time early next year.

The nonpartisan Congressional Budget Office and private-sector economists have all forecast the U.S. to fall into a recession if policymakers fail to act and avoid the cliff.

Hopes U.S. policymakers will avert a fiscal disaster sparked some demand for risk though the trend was short lived, which kept dollar demand strong all day.

Meanwhile, the euro and other higher-yielding currencies and asset classes came under pressure on reports that the eurozone's gross domestic product contracted 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter.

While the economy shrank less than market expectations for a 0.2% contraction, the data confirmed the currency group is in a recession.

The greenback was down against the pound, with GBP/USD trading up 0.10% at 1.5881.

The dollar was up against the yen, with USD/JPY trading up 0.13% at 81.27 and up against the Swiss franc, with USD/CHF trading up 0.45% at 0.9464.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.01% at 1.0011,  AUD/USD up 0.07% at 1.0339 and NZD/USD trading up 0.19% at 0.8108.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28% at 81.31.

Forex - Dollar gains on weak U.S. output data, fiscal cliff fears

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email