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Dollar remains mixed after positive U.S. data, Fed weighs

Published 09/19/2013, 10:51 AM
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Investing.com - The U.S. dollar remained mixed against the other major currencies on Thursday, after the release of strong U.S. economic reports, as news that the Federal Reserve left its stimulus program unchanged continued to weigh on demand for the greenback.

During U.S. morning trade, the dollar was lower against the euro, with EUR/USD rising 0.20% to 1.3549.

Data showed that the Philly Fed manufacturing index rose to a 30-month high of 22.3 in September, from a reading of 9.3 the previous month, blowing past expectations for an increase to 10.0.

Industry data also showed that U.S. existing home sales rose 1.7% to 5.48 million units last month, from 5.39 million in July. Analysts had expected existing home sales to fall 2.6% to 5.25 million in August.

Earlier Thursday, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. rose by 15,000 to a seasonally adjusted 309,000 in the week ending September 13, from an upwardly revised 294,000 the previous week.

Analysts had expected the number of people who filed for unemployment assistance to rise by 36,000 to 330,000 last week.

A separate report showed that the U.S. current account deficit narrowed to USD98.9 billion in the second quarter, from an downwardly revised deficit of USD104.9 billion in the three months to March. Analysts had expected the current account deficit to improve to a USD97 billion.

The data came a day after the Fed held back from reducing the USD85 billion pace of its monthly asset purchases.

The greenback was higher against the pound, with GBP/USD retreating 0.46% to 1.6070.

Earlier Thursday, official data showed that U.K. retail sales fell 0.9% in August, confounding expectations for a 0.4% rise, after a 1.1% increase the previous month.

In addition, the Confederation of British Industry said its index of industrial order expectations rose to 9 in September, from a reading of zero in August, beating expectations for an increase to 2.

Elsewhere, the greenback jumped higher against the yen, with USD/JPY rallying 1.59% to trade at 99.48, but slipped lower against the Swiss franc, with USD/CHF falling 0.29% to 0.9094.

The Swiss National Bank on Thursday re-affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy.

The comments came after the SNB held its benchmark interest rate near zero, in a widely expected move.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.07% to 1.0230, AUD/USD sliding 0.47% to 0.9475 and NZD/USD gaining 0.33% to 0.8398.

Official data earlier showed that New Zealand's gross domestic product expanded by 0.2% in the second quarter, in line with expectations, after an upwardly revised 0.4% expansion in the three months to March.

In Canada, official data showed that wholesale sales rose 1.5% in July, more than the expected 1% increase, after a downwardly revised 3.1% decline the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.17% to 80.36.


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