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Forex - U.S. Dollar After Spending Data, Pound Slides on Brexit Vote

Published 03/29/2019, 10:14 AM
Updated 03/29/2019, 10:14 AM
© Reuters.

Investing.com - The greenback gave up earlier gains by mid-morning in New York on Friday, after data showing only the weakest of bounces in U.S. consumer spending in January.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped 0.1% to 96.683 as of 10:14 AM ET (14:14 GMT). It had earlier hit a two-week high of 96.907.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.1% in January, following a 0.6% decline in December, its first drop since September 2016.

The data were consistent with other signs of weakness this week from the housing market and a downward revision to fourth-quarter gross domestic product. However, they were offset by a stronger-than-expected reading for consumer sentiment from the University of Michigan and by slightly better-than-expected numbers on new home sales for last month.

The dollar rose against the safe-haven yen, with USD/JPY rising 0.2% to 110.74.

Elsewhere, the pound fell briefly below $1.3000 as Prime Minister Theresa May's EU Withdrawal Agreement failed in the House of Commons for a third time, by a margin of 286-344. The defeat leaves a 'Hard' Brexit with no transitional arrangements on April 12th as the default option.

Elsewhere, the dollar rose another 1.7% against the Turkish lira as the central bank fought short-sellers ahead of municipal elections at the weekend. The loonie was up, with USD/CAD falling 0.6% to 1.3347 and EUR/USD inched up 0.1% to 1.1227.

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