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Forex - Dollar mostly higher after strong data

Published 08/22/2013, 08:54 PM
Updated 08/22/2013, 08:55 PM
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Investing.com - The U.S. dollar traded higher against most of its major rivals during Friday’s Asian session following some encouraging data points out of the U.S. that could be a sign the Federal Reserve has room to proceed with tapering of its bond-buying program later this year.

In Asian trading Friday, EUR/USD fell 0.07% to 1.3348. On Thursday, London-based Markit Economics reported earlier that its flash euro zone manufacturing purchasing managers’ index rose to 51.3 in August from a final reading of 50.3 in July. Analysts were expecting the index to come in at 50.8.

The flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than market calls for a 50.2 reading.

GBP/USD inched down 0.05% to 1.5582 a day after the Federal Reserve revealed in the minutes of its July policy meeting that while support for tapering monthly asset purchases remains consistent in the U.S. central bank, the timing of such a move remains up in the air as not all voting members remain convinced that data support such a move in the near future.

Riskier currencies are seen as vulnerable to the end of U.S. easing on the basis that the greenback, which has been strong in recent months, will gain more steam once easing is halted.

USD/JPY rose 0.25% to 98.98 while USD/CHF added 0.15% to 0.9246. USD/CAD rose 0.08% to 1.0527 as oil prices were little changed.

In U.S. economic news out Thursday, initial claims for jobless benefits fell by 15,000 to 320,000 last week. That is the lowest reading since October 2007, according to the U.S. Labor Department. Economists expected a reading of 335,000. The less volatile four-week moving average fell 4,000 to 332,000, the lowest level since November 2007.

The Conference Board’s index of leading economic indicators rose 0.6% last month after being flat in June. Eight of the ten indicators that comprise the index improved last month, including employment, improved equity markets, loan growth and building permits.

The Aussie was one of the strong Asia-Pacific currencies Friday as AUD/USD added 0.07% to 0.9014. NZD/USD fell 0.09% to 0.7824. The U.S. Dollar Index rose 0.13% to 81.61.


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