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Dollar edges higher ahead of U.S. economic reports

Published 05/13/2016, 05:47 AM
© Reuters.  Dollar gains some ground before U.S. data
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Investing.com - The dollar edged higher against the other major currencies on Friday, as investors eyed the release of a string of U.S. economic reports due later in the day and as downbeat euro zone data dampened demand for the single currency.

EUR/USD fell 0.22% to 1.1350.

The euro weakened after official data showed that the single currency bloc’s gross domestic product rose to 0.5% in the first quarter, from 0.3% in the preceding quarter.

That was below the initial reading of 0.6% released on April 29 and consensus that was expecting no change.

Year-on-year, GDP in the single currency bloc rose 1.5%, also below the initial estimate, the fourth quarter reading and analyst forecasts for growth of 1.6%.

USD/JPY was down 0.29% at 108.71.

The yen recovered somewhat from Japanese Finance Minister Taro Aso’s comments on Monday that financial authorities are prepared to intervene in the currency market if excessive moves in the yen are enough to affect the country’s economy.

But gains were capped, as Bank of Japan Governor Haruhiko Kuroda said on Friday that the central bank will act "decisively" to achieve its 2% inflation target, stressing that it still has "ample" policy options available if it were to expand stimulus again.

The dollar was higher the pound, with GBP/USD down 0.25% at 1.4413 and was steady against the Swiss franc, with USD/CHF at 0.9704.

The Australian and New Zealand dollars were lower, with AUD/USD down 0.53% at 0.7286 and with NZD/USD sliding 0.32% to 0.6798.

Earlier Friday, Statistics New Zealand said retail sales rose 0.8% in the first quarter, disappointing expectations for an increase of 1.0%, after a 1.2% gain in the three months to December.

Core retail sales, which exclude automobiles and gas stations, increased by 1.0% in the last quarter, below expectations for a 1.1% rise and after a revised 1.3% gain in the fourth quarter of 2015.

Elsewhere, USD/CAD edged up 0.13% to trade at 1.2860.

The commodity-related loonie weakened as oil prices moved lower on Friday, after Russia warned that a global crude supply glut could last into next year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 94.27.

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