Investing.com – The U.S. dollar was spotted higher against most of its major rivals during Friday’s Asian session as traders looked for safe-haven currencies following a spate of glum economic data points out of Europe and ahead of the G20 meeting. The summit starts later today in Moscow and runs through Saturday.
In Asian trading Friday, EUR/USD fell 0.07% to 1.3354 after a report published on Thursday the euro zone’s fourth-quarter GDP contracted by 0.6%, well below expectations for a 0.4% quarterly decline and far surpassing the previous 0.1% contraction. It was the worst rate of contraction since 2009 and the third straight quarter of negative growth. Typically, economists consider an economy to be in recession with two consecutive negative GDP readings.
Traders dumped the common currency after other reports showed Germany’s fourth-quarter GDP contracted by 0.6%, below expectations calling for a 0.5% drop. France’s fourth-quarter GDP shrank 0.3% while Italy’s contracted by 0.9%. Those three countries are the euro zone’s three largest economies in that order.
USD/JPY fell 0.04% to 92.85 as the Bank of Japan continued to defend the falling against international criticism that Japan is intentionally manipulating its currency. Ahead of the G20 meeting, some traders are expecting upside for the yen as Japanese officials are expected to be under pressure at the summit to explain the yen’s rapid slide, particularly against the dollar and euro.
Elsewhere, GBP/USD rose 0.07% to 1.5504, but the dollar gained some strength against the franc as USD/CHF climbed 0.12% to 0.9225. USD/CAD fell 0.03% to 1.0009 on speculation OPEC may trim oil output this month.
The greenback was split against some of the major currencies as AUD/USD is lower by 0.03% at 1.0358 while NZD/USD added 0.04% to 0.8514 on the back of some decent retail sales in New Zealand. The U.S. Dollar Index rose is higher by 0.03% at 80.50.
In Asian trading Friday, EUR/USD fell 0.07% to 1.3354 after a report published on Thursday the euro zone’s fourth-quarter GDP contracted by 0.6%, well below expectations for a 0.4% quarterly decline and far surpassing the previous 0.1% contraction. It was the worst rate of contraction since 2009 and the third straight quarter of negative growth. Typically, economists consider an economy to be in recession with two consecutive negative GDP readings.
Traders dumped the common currency after other reports showed Germany’s fourth-quarter GDP contracted by 0.6%, below expectations calling for a 0.5% drop. France’s fourth-quarter GDP shrank 0.3% while Italy’s contracted by 0.9%. Those three countries are the euro zone’s three largest economies in that order.
USD/JPY fell 0.04% to 92.85 as the Bank of Japan continued to defend the falling against international criticism that Japan is intentionally manipulating its currency. Ahead of the G20 meeting, some traders are expecting upside for the yen as Japanese officials are expected to be under pressure at the summit to explain the yen’s rapid slide, particularly against the dollar and euro.
Elsewhere, GBP/USD rose 0.07% to 1.5504, but the dollar gained some strength against the franc as USD/CHF climbed 0.12% to 0.9225. USD/CAD fell 0.03% to 1.0009 on speculation OPEC may trim oil output this month.
The greenback was split against some of the major currencies as AUD/USD is lower by 0.03% at 1.0358 while NZD/USD added 0.04% to 0.8514 on the back of some decent retail sales in New Zealand. The U.S. Dollar Index rose is higher by 0.03% at 80.50.