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Dollar extends gains after positive UoM report

Published 06/10/2016, 10:50 AM
© Reuters.  Dollar pushes higher vs. rivals, U.S. data supports
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Investing.com - The dollar remained broadly higher against the other major currencies on Friday, after data showed that U.S. consumer sentiment deteriorated less than expected this month, adding to optimism over the strength of the economy.

USD/JPY was down 0.14% at 106.94.

In a preliminary report, the University of Michigan said its consumer sentiment index fell to 94.3 in June from 94.7 the previous month, compared to expectations for a decline to 94.0.

The positive data added to optimism over the strength of the economy after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 4 fell unexpectedly to 264,000.

The reports came after Federal Reserve Chair Janet Yellen said on Monday that interest rates won’t rise until uncertainty over the economic outlook is resolved.

EUR/USD fell 0.27% to 1.1287, the lowest since June 3.

The euro remained under pressure after European Central Bank President Mario Draghi warned on Thursday that weak growth in the euro zone could cause “lasting dammage” to the region.

The dollar moved higher against the pound, with GBP/USD down 0.88% at a seven-week low of 1.4331 and was steady against the Swiss franc, with USD/CHF at 0.9644.

The pound remained under broad selling pressure amid mounting fears of a potential Brexit victory at the U.K. referendum scheduled on June 23.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.38% at 0.7402 and with NZD/USD sliding 0.31% to 0.7081.

Elsewhere, USD/CAD was little changed at 1.2725.

The loonie strengthened briefly earlier, after Statistics Canada reported that the number of employed people rose by 13,800 in May, blowing past expectations for a 3,800 rise, after a 2,100 decline the previous month.

The report also showed that Canada’s unemployment rate fell to 6.9% last month from 7.1% in April. Analysts had expected the unemployment rate to remain unchanged in May.

But commodity currencies remained under pressure as oil prices moved lower for a second consecutive session on Friday amid profit-taking following the previous session’s crude rally to multi-month highs.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at a fresh one-week high of 94.36.

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