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Dollar index turns higher after upbeat UoM report

Published 11/11/2016, 10:49 AM
© Reuters.  Dollar edges higher vs. rivals as U.S. consumer sentiment data supports
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Investing.com - The dollar turned higher against the other majors currencies on Friday, after data showed that U.S. consumer sentiment increased to a 5-month high in November and as investors remained optimistic regarding Donald Trump’s electoral win on Wednesday.

EUR/USD slipped 0.28% to 1.0866.

In a preliminary report, the University of Michigan said its consumer sentiment index rose to 91.6 this month from 87.2 in October. That was its highest reading since June 2016.

Analysts had forecast an uptick to 87.5.

The dollar also found support as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected.

Market participants were especially hoping to see Trump's policies boost spending and inflation.

The Mexican peso continued to tumble, with MXN/USD down 2.47% at fresh record lows of 0.0474.

In a press conference on Wednesday, Mexican central bank officials said they were watching market volatility but refrained from any measures to stem the peso’s decline.

Elsewhere, GBP/USD rose 0.31% to 1.2588, the highest since October 6.

The pound found some support as a number of British lawmakers said they are prepared to vote against Brexit negotiations after U.K. judges ruled that the government needed parliamentary approval to begin its departure process from the EU.

USD/JPY slipped 0.15% to 106.67, just off Thursday’s more than three-month high of 106.94, while USD/CHF held steady at 0.9872.

The Australian and New Zealand dollars extended earlier losses, with AUD/USD down 0.84% at 0.7545 and with NZD/USD tumbling 1.11% to 0.7132.

Meanwhile, USD/CAD climbed 0.53% to trade at a fresh seven-month high of 1.3542.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 98.94, re-approaching Thursday’s two-and-a-half week highs of 99.08.

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