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Dollar mixed vs. rivals after U.S. economic reports

Published 08/16/2013, 10:58 AM
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Investing.com - The U.S. dollar was mixed against the other major currencies on Friday, after the release of disappointing U.S. data added to speculation that the nation's economic recovery is not yet strong enough for the the Federal Reserve to soon begin tapering its stimulus program.

During U.S. morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.10% to 1.3332.

Markets were jittery after, in a preliminary report, the University of Michigan said its consumer sentiment index fell to 80.0 in August, from a reading of 85.1 the previous month. Analysts had expected the index to rise to 85.5 this month.

Official data earlier showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.

The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.

Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.

In the euro zone, official data showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.

The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, slipped to an annualized rate 1.1% last month, from 1.2% in June.

The data came after the European Central Bank said the current account surplus narrowed more than expected in June, falling to EUR16.9 billion from a surplus of EUR19.5 billion the previous month.

Analysts had expected the current account surplus to narrow to EUR19.0 billion in June.

The greenback was fractionally higher against the pound, with GBP/USD edging down 0.09% to 1.5619.

Elsewhere, the greenback was higher against the yen, with USD/JPY adding 0.25% to trade at 97.63, and almost unchanged against the Swiss franc, with USD/CHF inching 0.01% lower to 0.9261.

The greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.45% to 1.0353, AUD/USD advancing 0.72% to 0.9209 and NZD/USD gaining 0.43% to 0.8109.

Official data showed that manufacturing sales in Canada fell 0.5% in June, confounding expectations for a 1% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.18% to 81.32.


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