Investing.com - The dollar slid lower against the safe-haven yen on Friday, following the release of disappointing U.S. fourth quarter economic growth data.
USD/JPY was down 0.69% to 117.50 in late trade. The pair dipped 0.28% for the week and ended January 1.83% lower.
The Commerce Department said in a report that the economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week at 95.00, down 0.01% for the day and 0.33% lower on the week.
The dollar had strengthened broadly on Thursday after the Federal Reserve indicated that interest rates could start to rise around mid-year.
Following its policy meeting on Wednesday, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.
Meanwhile, EUR/JPY declined 0.93% to end at 132.66. The pair ended the week with a gain of 0.45% but still plunged 8.44% on the month.
The euro was under pressure after data showed that deflation in the single currency bloc deepened in January and amid growing concerns over Greece's future in the euro zone.
Eurostat said that the annual rate of euro zone inflation fell by 0.6% in January, after a 0.2% slip in December. Economists had expected an annual decline of 0.5%.
Greece’s new government said it will not cooperate with the International Monetary Fund and the European Union and will not seek an extension to its bailout program, underlining fears over a clash with its international creditors.
In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 2
The Institute of Supply Management is to release data on manufacturing activity. The country will also produce a report on personal income and spending.
Tuesday, February 3
The U.S. is to release data on factory orders.
Wednesday, February 4
The U.S. is to release a report on ADP nonfarm payrolls. Later in the day, the Institute of Supply Management is to release data on non-manufacturing activity.
Thursday, February 5
The U.S. is to produce its weekly report on initial jobless claims in addition to data on the trade balance.
Friday, February 6
The U.S. is to round up the week with the closely watched nonfarm payrolls report, and data on wage growth.