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Dollar still on the downside after U.S. economic reports

Published 10/17/2016, 10:50 AM
© Reuters.  Dollar remains broadly lower as U.S. data disappoints
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Investing.com - The dollar remained lower against the other major currencies on Monday, after the release of downbeat economic reports from the U.S. dampened optimism over the strength of the economy, although the greenback still remained within close distance of a seven-month peak.

The Federal Reserve of New York said its Empire State manufacturing index fell to -6.80 in October from -1.99 the previous month. Analysts had expected the index to rise to 1.00 this month.

A separate report showed that U.S. industrial production increased by 0.1% last month, below expectations for a gain of 0.2%.

However, manufacturing production increased by 0.2% last month, compared to forecasts for a 0.1% rise.

EUR/USD rose 0.22% to 1.0996, just off a more than two-month low of 1.0964 hit overnight.

Earlier Monday, final data showed that the euro zone consumer price index rose 0.4% in September, in line with expectations. Year-on-year, consumer prices gained 0.4% last month.

USD/JPY eased 0.09% to 104.07, close to last week’s more than two-month peak of 104.63.

GBP/USD slipped 0.22% to 1.2160, while USD/CHF edged down 0.10% to 0.9894.

The Australian dollar was steady, with AUD/USD at 0.7618, while NZD/USD climbed 0.59% to 0.7129.

Meanwhile, USD/CAD was little changed at 1.3144.

Statistics Canada reported on Monday that foreign securities purchases rose by C$12.74 billion in August, after an increase of C$9.10 billion the previous month, whose figure was revised from a previously estimated C$5.23 billion rise.

Analysts had expected foreign securities purchases to increase by C$6.24 billion in August.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 97.94, off a seven-month high of 98.15 hit overnight.

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