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Dollar holds onto gains after upbeat U.S. data

Published 10/31/2016, 09:45 AM
Dollar remains broadly higher vs. other majors
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Investing.com - The dollar held onto gains against the other majors currencies on Monday, after upbeat U.S. data and as optimism over the U.S. economy continued to support, although uncertainty over the outcome of the presidential race loomed.

The U.S. Commerce Department said on Monday that consumer spending increased 0.5% in September, in line with expectations and compared to a decline of 0.1% in August.

Personal income, meanwhile, rose by 0.3% in September, compared to expectations for 0.4% advance, after rising 0.2% a month earlier.

The greenback also remained supported after a stronger-than-forecast preliminary estimate of U.S. third quarter economic growth supported the case for the Federal Reserve to hike interest rates in December.

However, the U.S. dollar’s gains were capped by heightened political uncertainty after the FBI said it would review more emails related to Hillary Clinton's private email use.

EUR/USD slid 0.35% to 1.0948, after data showed that the pace of economic growth in the euro zone was unchanged in the third quarter from the second, while the rate of inflation picked up only slightly in October.

A separate report showed that German retail sales fell at the fastest rate in two years in September, adding to concerns over the outlook for the euro area’s largest economy.

Elsewhere, GBP/USD fell 0.25% at 1.2161.

USD/JPY rose 0.29% to 105.04, while USD/CHF edged up 0.12% to 0.9893.

The Australian dollar was steady, with AUD/USD at 0.7603, while NZD/USD shed 0.24% to 0.7150.

Meanwhile, USD/CAD was little changed at 1.3397, just off Friday’s seven-month high of 1.3432.

Statistics Canada reported earlier that raw materials prices slipped 0.1% in September, compared to expectations for an increase of 0.5% and after a 0.7% decline the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was uo 0.29% at 98.59, still close to last Tuesday’s almost nine-month high of 99.09.

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