Breaking News

Forex - Dollar Falls to More than 2-Week Lows after U.S. Data Disappoints

ForexOct 13, 2017 08:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Dollar drops against other majors on lower-than-expected U.S. inflation figures

Investing.com - The U.S. dollar fell to a more than two-week low against other major counterparts on Friday, after the release of downbeat U.S. data dampened optimism over the strength of the economy and fueled uncertainty over a potential U.S. rate hike before the end of the year.

The greenback was hit after the U.S. Commerce Department said consumer prices rose less than expected in September, both on a monthly and annual basis.

A separate report showed that U.S. retail sales also increased less than analysts had anticipated last month. However, the core reading exceeded market expectations.

The reports came after the minutes of the Federal Reserve's September policy meeting this week showed that policymakers remain divided on inflation.

Some fear that a lower than expected increase in U.S. inflation could prevent the Fed from raising interest rates in December.

EUR/USD gained 0.34% to 1.1831, moving closer to Thursday's two-week peak of 1.1880, while GBP/USD advanced 0.41% to trade at a fresh two-week high of 1.3317.

The pound was boosted by reports by German newspaper Handelsblatt on Thursday that the U.K. could stay in the European Union for another two years.

The newspaper indicated that the EU's offer is tied to the U.K. meeting all of its obligations as a member country, but giving up its voting rights.

Sterling had initially dropped after EU chief negotiator Michel Barnier announced on Thursday that Brexit talks were at an "impasse."

Meanwhile, European Central Bank President Mario Draghi reiterated in a speech on Thursday that the ECB's asset purchases would continue until officials see a sustained improvement in the outlook for inflation.

Draghi added that interest rates would remain at current levels "well past" the time the central bank stops buying assets.

Elsewhere, USD/JPY dropped 0.50% to 111.71, while USD/CHF retreated 0.40% to 0.9715.

The Australian and New Zealand dollars pushed higher, with AUD/USD up 0.81% at 0.7883 and with NZD/USD climbing 0.74% to trade at 0.7180 after data earlier showed that China's imports increased by 18.7% last month, beating expectations, while exports rose less than expected by 8.1%.

China is Australia's biggest export partner and New Zealand's second biggest export partner.

The Canadian dollar turned higher, with USD/CAD down 0.17% at 1.2457.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.38% at 92.60 by 08:40 a.m. ET (12:40 GMT), its lowest since September 26.

Forex - Dollar Falls to More than 2-Week Lows after U.S. Data Disappoints

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