Breaking News
0

Forex - Dollar Shakes Off Mixed U.S. Economic Data to Trade Higher

ForexAug 09, 2018 01:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The dollar shrugged off mixed U.S. economic data on Thursday

Investing.com - The dollar traded higher against its rivals Thursday, shrugging off a mixed economic data as traders continue to bet a stronger U.S. economy would underpin the greenback amid lingering trade-war tensions.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.32% to 95.27.

The U.S. Department of Labor reported Thursday that initial jobless claims dropped by 6,000 to a seasonally-adjusted 213,000 for the week ended Aug. 3, beating economists’ forecast for a rise to 220,000.

The Labor Department said on Wednesday its producer price index for final demand was flat last month after rising 0.3% in June. In the 12 months through August, the PPI rose 3.3%, compared with expectations for a 3.4% rise.

Analysts downplayed the weaker-than-expected data and blamed the slowdown in wholesale prices on the volatile trade services component.

The trade-services component did most of the damage, which was a story of softness in fuels, lubricants and machinery, RBC said.

"If we strip out trade services from core, it would have been up 0.3%," the bank added.

The dollar remained supported, however, on expectations that U.S. would fare better in a trade war than China as the U.S. economy is less dependent on exports.

“You have rising income, rising labor participation, rising confidence, and all of that consumer spending accounts for two thirds of our (U.S.) GDP,” said Scott Clemons, chief investment strategist for Brown Brothers Harriman in New York last week. “Our starting position is much stronger than the Chinese because trade doesn’t matter as much to the American economy.”

The dollar was also supported by slump in the euro and weakness in the pound.

EUR/USD fell 0.44% to $1.1559. while GBP/USD fell 0.23% to $1.2851 as fears of a no-deal Brexit continued to weigh.

USD/CAD rose 0.22% to C$1.3051 while USD/JPY fell 0.05% to Y110.98.

Forex - Dollar Shakes Off Mixed U.S. Economic Data to Trade Higher
 

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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
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.
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?
 
Post
 
Replace the attached chart with a new chart ?
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
or
Sign up with Email