Investing.com - The U.S. dollar turned broadly lower against the other major currencies on Friday, as the release of mixed U.S. data added to speculation that the U.S. economic recovery is not yet strong enough for the Federal Reserve to soon begin tapering its stimulus program.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD adding 0.15% to 1.3362.
The greenback weakened broadly, after official data showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
In the euro zone, official data showed earlier showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.
The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, slipped to an annualized rate 1.1% last month, from 1.2% in June.
The data came after the European Central Bank said the current account surplus narrowed more than expected in June, falling to EUR16.9 billion from a surplus of EUR19.5 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR19.0 billion in June.
The greenback was fractionally lower against the pound, with GBP/USD edging up 0.07% to 1.5644.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY easing 0.08% to trade at 97.30, and with USD/CHF falling 0.28% to 0.9236.
The greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.24% to 1.0332, AUD/USD climbing 0.59% to 0.9197 and NZD/USD adding 0.20% to 0.8090.
Official data showed that manufacturing sales in Canada fell 0.5% in June, confounding expectations for a 1% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.02% to 81.15.
Later in the day, the University of Michigan was to release its closely watched preliminary data on consumer sentiment.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD adding 0.15% to 1.3362.
The greenback weakened broadly, after official data showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
In the euro zone, official data showed earlier showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.
The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, slipped to an annualized rate 1.1% last month, from 1.2% in June.
The data came after the European Central Bank said the current account surplus narrowed more than expected in June, falling to EUR16.9 billion from a surplus of EUR19.5 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR19.0 billion in June.
The greenback was fractionally lower against the pound, with GBP/USD edging up 0.07% to 1.5644.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY easing 0.08% to trade at 97.30, and with USD/CHF falling 0.28% to 0.9236.
The greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.24% to 1.0332, AUD/USD climbing 0.59% to 0.9197 and NZD/USD adding 0.20% to 0.8090.
Official data showed that manufacturing sales in Canada fell 0.5% in June, confounding expectations for a 1% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.02% to 81.15.
Later in the day, the University of Michigan was to release its closely watched preliminary data on consumer sentiment.