Investing.com - The U.S. dollar remained broadly higher against the other major currencies on Friday, after the release of mixed U.S. data, while mounting concerns that U.S. officials will not agree on a deal to prevent a fiscal crisis boosted demand for the safe haven greenback.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.50% to 1.3177.
The euro extended losses against the greenback after the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
The greenback was also higher against the pound, with GBP/USD declining 0.49% to 1.6198.
Earlier in the day, official data showed that the U.K. economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Elsewhere, the greenback was lower against the yen, with USD/JPY falling 0.21% to trade at 84.20, and higher against the Swiss franc, with USD/CHF rising 0.49% to 0.9161.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.60% to 0.9936, AUD/USD sliding 0.56% to 1.0423 and NZD/USD tumbling 1.28% to 0.8232.
In Canada, official data showed that the economy expanded by 0.1% in October, in line with expectations.
A separate report showed that Canada's core consumer price inflation, which excludes the eight most volatile items, was flat in November compared with expectations for a 0.1% rise, while consumer price inflation fell 0.2%, more than the expected 0.1% dip.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to 79.59.
Risk sentiment also remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.50% to 1.3177.
The euro extended losses against the greenback after the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
The greenback was also higher against the pound, with GBP/USD declining 0.49% to 1.6198.
Earlier in the day, official data showed that the U.K. economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Elsewhere, the greenback was lower against the yen, with USD/JPY falling 0.21% to trade at 84.20, and higher against the Swiss franc, with USD/CHF rising 0.49% to 0.9161.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.60% to 0.9936, AUD/USD sliding 0.56% to 1.0423 and NZD/USD tumbling 1.28% to 0.8232.
In Canada, official data showed that the economy expanded by 0.1% in October, in line with expectations.
A separate report showed that Canada's core consumer price inflation, which excludes the eight most volatile items, was flat in November compared with expectations for a 0.1% rise, while consumer price inflation fell 0.2%, more than the expected 0.1% dip.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to 79.59.
Risk sentiment also remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.