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Forex - Dollar remains moderately higher despite U.S. data miss

Published 01/27/2017, 08:41 AM
© Reuters.  Dollar still on the upside even as U.S. data disappoints
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Investing.com - The dollar remained moderately higher against other major currencies on Friday, as the release of disappointing U.S. economic growth and durable goods orders data failed to dampened optimism over the outlook for the economy under the Trump administration.

EUR/USD edged up 0.13% to 1.0693, off session lows of 1.0657.

The U.S. Bureau of Economic Analysis said gross domestic product grew 1.9% in the fourth quarter of 2016, disappointing expectations for 2.2% and after a 3.5% growth rate in the three months to September.

Separately, the Census Bureau said U.S. durable goods orders fell 0.4% in December, compared to expectations for a 2.6% gain.

Core durable goods orders, which exclude transportation items increased by 0.5% last month, in line with expectations.

The greenback had strengthened mildly after U.S. President Donald Trump suggested late Thursday the implementation of a 20% tax on Mexican goods to pay for a border wall.

The comments came after the U.S. President ordered construction of a U.S.-Mexican border wall and punishment for cities shielding illegal immigrants.

Elsewhere, GBP/USD declined 0.47% to trade at 1.2540, off Thursday’s six-week high of 1.2680.

Investors remained cautious as U.K. Prime Minister Theresa May was set to meet with Donald Trump on Friday.

The two leaders were expected to discuss the possibility of a trade deal between their countries.

USD/JPY climbed 0.47% to 115.08, the highest since January 20, while USD/CHF held steady at 1.0001.

Data earlier showed that Tokyo’s consumer price index rose by an annualized rate of 0.1% in January, beating expectations for a flat reading.

Tokyo’s core CPI, which excludes fresh food, slipped 0.3% this month, compared to expectations for a 0.4% fall.

The Australian and New Zealand dollars turned higher, with AUD/USD up 0.13% at 0.7545 and with NZD/USD adding 0.14% to 0.7253.

Meanwhile, USD/CAD gained 0.17% to trade at 1.3115.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 100.67, off the previous session’s seven-week low of 99.77.

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