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Dollar turns broadly higher after strong U.S. data

Published 07/31/2013, 08:50 AM
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Investing.com - The U.S. dollar turned broadly higher against the other major currencies on Tuesday, following the release of strong U.S. economic growth and employment data, while investors still eyed the Federal Reserve's upcoming monetary policy statement.

During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.25% to 1.3226.

The greenback strengthened broadly after official data showed that the U.S. economy grew at a seasonally adjusted annual rate of 1.7% in the second quarter, beating expectations for growth of 1%.

The U.S. economy grew by 1.1% in the previous quarter, whose figure was downwardly revised from a previously reported increase of 1.8%.

Separately, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.

The previous month’s figure was revised up to a gain of 198,000 from a previously reported increase of 188,000.

The euro found support earlier after official data showed that the number of unemployed people in Germany fell by 7,000 in June, confounding expectations for a 4,000 fall. Germany's unemployment rate remained unchanged at 6.8% in June, in line with expectations.

A separate report showed that German retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.

In addition, the unemployment rate in the euro zone held steady at 12.1% last month, confounding expectations for a rise to 12.2%.

The greenback was also higher against the pound, with GBP/USD retreating 0.60% to 1.5145.

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.24% to trade at 98.26, and with USD/CHF gaining 0.25% to 0.9321.

The KOF Economic Research Agency earlier said its economic barometer for Switzerland rose to 1.23 in July from a reading of 1.15 the previous month, compared to expectations for a rise to 1.22.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.06% to 1.0312, AUD/USD tumbling 0.95% to 0.8976 and NZD/USD declining 0.42% to 0.7956.

Data showed that the ANZ business confidence index rose to 52.8 in July, from a reading of 50.1 the previous month, hitting a 14-year high.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to 82.19.

Later in the day, the U.S. was to release data manufacturing activity in Chicago.


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