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Dollar edges lower vs. rivals as U.S. data still weighs

Published 08/15/2016, 05:42 AM
© Reuters.  Dollar slips against other majors on Friday's weak U.S. data
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Investing.com - The dollar edged lower against the other major currencies on Monday, as Friday’s disappointing U.S. economic reports continued to weigh on demand for the greenback.

EUR/USD eased up 0.08% to 1.1170.

The greenback weakened broadly after the U.S. Commerce Department said on Friday that retail sales were flat in July, compared expectations for a 0.4% rise. Core retail sales, which exclude automobile sales, fell by 0.3% in July.

A separate report showed that U.S. producer prices fell by 0.4% last month, disappointing expectations for a 0.1% rise. Year-over-year, producer prices decreased by 0.2%.

In addition, the University of Michigan said its consumer sentiment index rose to 90.4, from July’s reading of 90.0. Analysts had forecast a larger increase to 91.5.

The downbeat data fueled concerns over the strength of the U.S. economy and dampened expectations for a 2016 rate hike by the Federal Reserve.

GBP/USD held steady at 1.2912, close to Friday’s one-month low of 1.2934.

USD/JPY slid 0.34% to 100.93, while USD/CHF was little changed at 0.9743.

Earlier Monday, preliminary data showed that Japan’s gross domestic product was flat in the second quarter, disappointing expectations for a 0.7% rise and after an upwardly revised growth rate of 2.0% in the three months to March.

Year-on-year, Japan’s economy grew 0.2% in the last quarter, compared to expectations for 0.7%.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.31% at 0.7670 and with NZD/USD adding 0.12% to 0.7211.

Elsewhere, USD/CAD slipped 0.10% to 1.2939, re-approaching Friday’s one-month trough of 1.2920.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 95.59, not far from Friday’s one-and-a-half week low of 95.19.

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