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Dollar index continues to hover near 1-month lows

Published 01/13/2017, 10:52 AM
© Reuters.  Dollar still on the downside vs. rivals, U.S. data disappoints
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Investing.com - The dollar continued to trade near one-month lows against the other majors currencies on Friday, as the greenback somewhat recovered from earlier losses but remained under solid pressure amid persistant U.S. political concerns.

EUR/USD edged up 0.12% to 1.0626, close to the previous session’s five-week highs of 1.0687.

In a preliminary report, the University of Michigan said its consumer sentiment index ticked down to 98.1 in January from 98.2 the previous month. Analysts had expected the index to rise to 98.5 this month.

The data came after the U.S. Census Bureau said retail sales rose 0.6% in December, disappointing expectations for a 0.7% gain. November’s 0.1% uptick was revised to an increase of 0.2%.

Core retail sales, which exclude automobiles, gained 0.2% last month, compared to expectations for a 0.5% climb.

A separate report showed that the U.S. producer price index edged up 0.3% in December, in line with expectations and after a 0.4% increase the previous month.

Year-on-year, producer prices increased 1.6%, in line with forecasts.

But the greenback remained under pressure since U.S. President-elect Donald Trump failed to offer details on his promises to boost fiscal spending and cut taxes at a highly-anticipated news conference on Wednesday.

In addition, St. Louis Federal Reserve bank president James Bullard said on Thursday that the election of Donald Trump has not yet switched the U.S. economy to a new "regime" that requires a quick rise in interest rates, which can remain "fairly low" at least through 2017.

Elsewhere, GBP/USD was steady at 1.2165, off session highs of 1.2233 and not far from Wednesday’s three-month lows of 1.2036.

USD/JPY gained 0.30% to 115.02, just off Thursday’s five-week trough of 113.73, while USD/CHF was almost unchanged at 1.0101.

The Australian dollar was steady, with AUD/USD at 0.7486, while NZD/USD rose 0.23% to 0.7109.

Meanwhile, USD/CAD slipped 0.11% to trade at 1.3128, off Thursday’s three-month trough of 1.3028.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.40, off session lows of 100.97 but still close to the previous session’s one-month low of 100.70.

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