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Dollar pares losses after U.S. data

Published 08/28/2015, 08:45 AM
© Reuters.  Dollar eases off session lows after U.S. trade, personal spending reports
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Investing.com - The dollar pared losses against against the other major currencies on Friday, after data showed that the U.S. goods trade deficit narrowed last month, while U.S. personal spending rose less than expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.07% at 95.68, off lows of 95.40 hit earlier in the session.

The dollar remained lower against the yen, with USD/JPY down 0.24% to 120.72.

The U.S. Bureau of Economic Analysis reported on Friday that the goods trade deficit narrowed to $59.12 billion in July from $62.26 billion the previous month.

A separate report showed that U.S. personal spending rose 0.3% last month, disappointing expectations for an increase of 0.4%. Personal spending rose 0.3% in June, whose figure was revised from a previously estimated 0.2% gain.

Data also showed that U.S. personal income rose by 0.4% in July, in line with expectations.

The dollar remained supported after data on Thursday showed that U.S. gross domestic product grew at an annual rate of 3.7% in the second quarter, above expectations for growth of 3.2%.

The upbeat data added to optimism over the perspective for global economic growth, while concerns over volatility in Asian markets continued to subside. Shares in Shanghai opened higher on Friday, after closing over 5% the day before.

In Japan, data on Friday showed that household spending fell at an annual rate of 0.2% in July, compared to an increase of 1.3%, after a 2.0% drop the previous month.

Japan's retail sales increased by 1.6% in July, beating expectations for a 1.1% gain, data also showed.

The dollar was also lower against the euro, with EUR/USD up 0.21% to 1.1270, after hitting one-week lows of 1.1202 on Thursday.

Earlier Friday, preliminary data showed that Germany's consumer price index was flat in August, compared to expectations for a 0.1% downtick, after a 0.2% gain the previous month.

The dollar edged higher against the pound, with GBP/USD down 0.11% at 1.5385 and pushed lower against the Swiss franc, with USD/CHF sliding 0.81% to 0.9587.

Markets shrugged a report by the Office for National Statistics on Friday showing that U.K. GDP rose 0.7% in the second quarter, in line with expectations and unchanged from a preliminary estimate.

On a yearly basis, the U.K. economy grew at a rate of 2.6% in the last quarter, in line with market expectations.

The Australian and New Zealand dollars turned lower, with AUD/USD down 0.34% at 0.7142 and with NZD/USD shedding 0.31% to 0.6451.

Meanwhile, USD/CAD gained 0.54% to trade at 1.3273.

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