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Dollar remains lower vs. rivals after mixed U.S. data

Published 02/27/2015, 10:52 AM
Dollar remains broadly lower as U.S. data weighs
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Investing.com - The dollar remained lower against a basket of other major currencies on Friday, after a string of U.S. data painted a mixed picture of the strength of the country's economic recovery.

In a revised report, the University of Michigan said its consumer sentiment index rose to 95.4 this month from 93.6 in January, beating expectations for an increase to 94.0.

The UoM also said that its inflation expectations for the next 12 months remained unchanged at 2.8% in February.

Separately, the National Association of Realtors said that U.S. pending home sales rose 1.7% in January, confounding expectations for an increase of 2.0%. December's figure was revised to a 1.5% decline from a previously estimated 3.7% drop.

Data also showed that the Chicago purchasing managers' index fell to five-and-a-half year low of 45.8 this month from a reading of 59.4 in January. Analysts had expected the index to tick down to 58.0 in February.

The reports came shortly after the Bureau of Economic Anaysis said that the U.S. gross domestic product expanded by 2.2% in the fourth quarter of 2014, below initial estimates for a growth rate of 2.6% but above expectations for 2.1%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% to 95.13.

EUR/USD edged up 0.20% to 1.1220. The euro found some support after preliminary data showed that German consumer prices rose 0.9% this month, exceeding expectations for a 0.7% gain, after a 1.1% decline in January.

Data also showed that French consumer spending rose 0.6% last month, confounding expectations for a 0.5% fall. December's figure was revised to a 1.6% increase from a previously estimated 1.5% gain.

The dollar was steady against the yen, with USD/JPY at 119.36 and dropped against the Swiss franc, with USD/CHF down 0.48% to 0.9484.

Official data earlier showed that Japan's household spending fell 0.3% last month, compared to expectations for a 0.4% rise, after a 0.4% increase in December.

Data also showed that Japan's retail sales declined at an annualized rate of 2.0% in January, more than the expected 1.3% drop, after a 0.2% uptick in December.

On the upside, preliminary data showed that Japan's industrial production increased by 4.0% in January, beating expectations for a 2.7% gain, after a 0.8% rise the previous month.

In Switzerland, data showed that the KOF economic barometer fell to 90.1 this month from 96.1 in January, whose figure was revised from a previously estimated 97.0. Analysts had expected the index to drop to 90.0 in February.

In other trade, sterling was higher, with GBP/USD adding 0.26% to 1.5445.

The Australian, New Zealand and Canadian dollars remained broadly stronger, with AUD/USD up 0.24% to 0.7823 and NZD/USD gaining 0.41% to 0.7563, while USD/CAD slid 0.42% to 1.2463.

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