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Forex - Dollar Set for Weekly Drop as Trade Tensions, Weak Economic Data Weigh

Published 04/13/2018, 01:05 PM
© Reuters.
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Investing.com – The dollar remained set for a weekly loss as it pared some of its gains against yen after the release of negative U.S. economic data and ongoing U.S.-China trade jitters.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.02% to 89.46.

USD/JPY eased off session highs of Y107.78 to trade at Y107.43, up 0.11%, as traders digested weaker sentiment and jobs data, while reports that the White House plans to outline fresh tariffs attracted demand for safe-haven yen.

The White House is planning to ramp up trade pressure on China by threatening to block Chinese technology investment in the United States, The Wall Street Journal reported, citing officials familiar with the matter.

The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in February fell to about 6.0m, missing expectations of 6.11m.

The University of Michigan consumer sentiment index fell to a three-month low of 97.8 in April, undershooting economists’ forecasts of 100.6.

Hawkish comments from Boston Fed President Eric Rosengren helped lift sentiment, however, after he said the U.S. central bank may need to raise rates by more than what it currently expects.

At its most recent meeting, the Federal Reserve revealed that policymakers expect two additional rate hikes this year.

Modest gains in both the pound and euro also weighed on the dollar.

EUR/USD rose 0.11% to $1.2340, while GBP/USD rose 0.15% to $1.4249.

USD/CAD rose 0.14% to $1.2605 as the loonie struggled to turn positive against the greenback despite an ongoing rally in oil prices.

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