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Dollar broadly higher as U.S. data eyed for stimulus cues

Published 08/16/2012, 06:23 AM
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Investing.com - The U.S. dollar was higher against most of the other major currencies on Thursday, as investors looked ahead to U.S. data later in the day, amid diminishing expectations for more easing by the Federal Reserve.

During European late morning trade, the dollar was higher against the euro, with EUR/USD edging down 0.15% to 1.2270.

The dollar remained supported after data on Wednesday showed that industrial production in the U.S. rose more than expected in July.

The data came one day after significantly stronger-than-expected U.S. retail sales numbers for July damped expectations for another round of quantitative easing by the U.S. central bank.

But investors remained cautious after data on Wednesday showed that a gauge of manufacturing activity in New York fell into contraction territory in August for the first time since October 2011.

The greenback was lower against the pound, with GBP/USD easing up 0.06% to 1.5693.

The pound erased early losses against the greenback after data showed that U.K. retail sales rose unexpectedly in July, indicating that the U.K. economy may not be as weak as feared.

The Office for National Statistics said U.K. retail sales rose by a seasonally adjusted 0.3% in July, defying expectations for a 0.1% decline.

Retail sales for June were revised up to a 0.8% gain from a previously reported increase of 0.1%.

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY advancing 0.26% to 79.19 and USD/CHF easing up 0.16% to 0.9788.

In Switzerland, the ZEW Centre for European Economic Research said its index of economic sentiment hit a three-month high in August but remained in negative territory, coming in at minus 33.3, from a reading of minus 42.5 in July.

The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.04% to 0.9888, AUD/USD slipping 0.18% to 1.0485 and NZD/USD inching down 0.03% to 0.7999.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% to 82.83.

Later Thursday, the U.S. was to publish official data on building permits and housing starts, as well as weekly government data on unemployment claims and data on manufacturing activity in the Philadelphia area.   

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