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Dollar slides on soft pricing data, upbeat consumer sentiment supports

Published 12/12/2014, 03:18 PM
Updated 12/12/2014, 03:19 PM
Dollar dips on soft producer price index
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Investing.com - The dollar traded mixed to lower against most major currencies on Friday after wholesale pricing data came in weaker than expected, though and upbeat report on consumer sentiment

In U.S. trading on Friday, EUR/USD was up 0.37% at 1.2453.

The dollar has rallied against the euro and other currencies in recent months on expectations for U.S. monetary policy to grow less accommodative while European and Asian central banks move in the opposite direction.

On Friday, mixed U.S. data allowed for profit taking.

The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to a nearly eight-year high of 93.8 this month from 88.8 in November. Analysts had expected the index to rise to 89.7 in December.

The data came after the U.S. Department of Labor reported that the U.S. producer price index fell 0.2% last month, surpassing expectations for a 0.1% downtick, after rising 0.2% in October.

Core producer price inflation, which excludes food, energy and trade, was flat in November, confounding expectations for a 0.1% rise, after an increase of 0.4% the previous month.

Meanwhile in Europe, the single currency found support after data showed that industrial production in the euro zone rose 0.1% in October, in line with expectations, after a 0.5% increase in September, whose figure was revised from a previously estimated 0.6% gain.

Year-on-year, the bloc's industrial production increased 0.7% in October, beating expectations for a 0.5% rise, after a revised 0.2% uptick in September.

The dollar was down against the yen, with USD/JPY down 0.02% at 118.67, and down against the Swiss franc, with USD/CHF down 0.38% at 0.9645.

The greenback was up against the pound, with GBP/USD down 0.16% at 1.5707.

The U.K. Office for National Statistics reported earlier that construction output declined 2.2% in October, disappointing expectations for a 0.8% rise.

Construction output rose 2.2% in September, whose figure was revised from a previously estimated 1.8% gain.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.46% at 1.1575, AUD/USD down 0.28% at 0.8246 and NZD/USD down 0.65% at 0.7766.

The commodity-linked currencies came under pressure after China reported that its industrial production rose 7.2% in November, missing expectations for an increase of 7.5%, after a 7.7% gain in October.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% at 88.35.

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