Investing.com - The dollar held onto modest gains against other major currencies on Friday, after the release of positive U.S. housing sector data, but the greenback’s upside was expected to remain limited as markets looked on to the first round of France’s presidential election on Sunday.
The U.S. National Association of Realtors said existing home sales increased by 4.4% in March to5.71 million units from the previous month’s revised total of 5.47 million units. Analysts had expected a 2.5% rise to 5.60 million units last month.
EUR/USD slipped 0.23% to 1.0691, off the previous session’s nearly one-month peak of 1.0721.
The euro weakened after a French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State.
Market participants were now eyeing the first round of the French presidential election due on Sunday, as recent polls have forecast the most likely outcome to be centrist Emmanuel Macron against far-right candidate Marine Le Pen.
Earlier Friday, research group Markit said its flash euro zone composite purchasing manager’s index, which measures the combined output of both the manufacturing and service sectors increased to a six-year high of 56.7 in April from 56.4 last month, beating forecasts for a drop to 56.3.
Elsewhere, GBP/USD edged down 0.21% to 1.2785 after the U.K. Office for National Statistics said retail sales slumped 1.8% in March, confounding expectations for a 0.2% slip. Year-on-year, retail sales increased 1.7% last month, compared to forecasts for a 3.4% rise.
But the pound’s losses were limited since U.K. Prime minister Theresa May on Tuesday called a snap election for June 8.
USD/JPY fell 0.24% to trade at 109.07, while USD/CHF dipped 0.03% to 0.9983.
The Australian dollar was steady, with AUD/USD at 0.7532, while NZD/USD slipped 0.09% to 0.7005.
Meanwhile, USD/CAD gained 0.35% to trade at a fresh six-week high of 1.3517 after Statistics Canada said the consumer price index increased by 0.2% in March, compared to forecasts for a 0.4% gain and after a 0.2% rise the previous month.
Year-on-year, consumer prices rose 1.6% last month, below expectations for a 1.8% increase.
Core CPI, which excludes food and energy, rose by 0.3% in March, after a gain of 0.4% in February.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 99.86, the highest level since Tuesday and away from Thursday’s three-week low of 99.29.