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Dollar remains broadly higher in quiet trade

Published 04/22/2016, 08:39 AM
© Reuters.  Dollar holds onto gains vs. rivals, trades at 1-week highs
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Investing.com - The dollar remained broadly higher against the other major currencies in quiet trade on Friday, as tdisappointing data from the euro zone continued to weigh on the euro and as higher oil prices supported market sentiment.

Market sentiment was boosted as oil prices remained close to five-month highs on Friday.

EUR/USD slid 0.27% to trade at 1.1258.

Research group Markit said its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors slipped from 53.1 in March to 53.0 in April, below forecasts for 53.2.

Markit also said the German manufacturing PMI rose to 51.9 in April from 50.7 the previous month, while the services PMI fell to 54.9 from 55.1.

In France, the manufacturing PMI fell to 48.3 in April from 49.6 the previous month, while the services PMI rose to 50.8 from 49.9.

USD/JPY rallied 1.34% to 110.93.

The yen weakened following reports the Bank of Japan was considering helping banks by applying negative rates to its lending programme for financial institutions.

Meanwhile, the dollar was lower against the pound, with GBP/USD up 0.40% at 1.4381 and remained higher against the Swiss franc, with USD/CHF adding 0.16% to 0.9767.

The Australian dollar was steady, with AUD/USD at 0.7732, while NZD/USD dropped 0.39% to 0.6883.

Elsewhere, USD/CAD retreated 0.48% to 1.2672 after Statistics Canada said retail sales rose by 0.4% in February, confounding expectations for a 0.8% fall and after a downwardly revised 2.0% gain the previous month.

Core retail sales, which exclude automobiles, ticked up 0.2% in February, beating expectations for a 0.5% slip.

A separate report showed that Canada’s consumer price index rose 0.6% in March, in line with expectations. Year-on-year, consumer prices rose 1.3%, exceeding expectations for an increase of 1.2%.

Core CPI, which excludes the eight most volatile items advanced by 0.7% last month, compared to expectations for a 0.3% gain.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 94.86, the highest since April 15.

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