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Forex - Dollar remains near 5-month lows vs. other majors

Published 04/28/2017, 10:48 AM
© Reuters.  Dollar still broadly lower vs. rivals after tepid U.S. data
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Investing.com - The dollar remained near five-month lows against other major currencies on Friday, after the release of tepid U.S. economic reports and as concerns over U.S. politics persisted.

In a revised report, the University of Michigan said its consumer sentiment index slipped 97.0 in April from 98.0 the previous month, compared to expectations for an unchanged reading.

The data came after the U.S. Bureau of Economic Analysis said gross domestic product rose 0.7% in the first quarter, down from the 2.1% growth rate registered in the fourth quarter of 2016. Analysts had expected the GDP to rise 1.2% in the last quarter.

Meanwhile, sentiment on the greenback remained fragile after U.S. President Donald Trump said he will either renegotiate or terminate a "horrible" trade deal with South Korea.

The comments came shortly after Trump said that a "major, major" conflict with North Korea is possible but he is looking for a diplomatic answer.

EUR/USD gained 0.34% to 1.0910. Earlier Friday, data showed that German retail sales rose 0.1% in March, confounding expectations for a 0.3% fall.

Elsewhere, GBP/USD rose 0.20% to 1.2929, just off a six-month high of 1.2956 hit earlier in the session.

The U.K. Office for National Statistics reported on Friday that the GDP expanded by 0.3% in the three months ended March 31, below forecasts for growth of 0.4%.

However, the U.K. economy grew by 0.7% in the preceding quarter and has now grown for 17 consecutive quarters.

Year-over-year, U.K. economy expanded by a 2.1% rate in the first quarter, also below forecasts for an expansion of 2.2%.

USD/JPY added 0.19% to 111.48, while USD/CHF eased 0.09% to 0.9931.

Data earlier showed that Japan’s household spending declined 2.0% in March, compared to expectations for a 0.8% fall.

A separate report showed that Japan’s consumer price index rose by an annualized rate of 0.2% last month, below expectations for a 0.3% gain.

Meanwhile, industrial production dropped 2.1% in March, according to preliminary data, compared to forecasts for a 0.8% slide.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.17% at 0.7453 and with NZD/USD shedding 0.28% to 0.6856.

Meanwhile, USD/CAD advanced 0.38% to trade at 1.3687, just off Thursday’s 14-month peak of 1.3672, after Statistics Canada reported that the country’s GDP was flat in February, compared to expectations for a 0.1% rise and after a growth rate of 0.6% the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 98.86, not far from a recent five-month low of 98.56.

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