Forex - U.S. dollar moves lower on euro zone growth signals

Investing.com - The U.S. dollar traded lower against its major counterparts as surprisingly positive German business confidence numbers and IMF bailout hopes increase demand for the risk on trade.

During U.S. morning trade, the dollar was lower against the euro, with EUR/USD gaining 0.37% to hit 1.3187.

The single currency rally was fueled as the German ifo business climate numbers surprised economists, climbing to 109.9 from 109.8 the previous month. 

Economists expected a drop to 109.5. 

Germany is the euro zone’s largest economy therefore German economic improvements are a major signal of global growth thus supportive of the euro 

Meanwhile, the IMF is meeting with Group of 20 officials, on the heels of IMF director Christine Lagarde stating Thursday; she expects more contributions in her campaign for a larger bailout fund, adding to the risk on sentiment. 

The greenback was also lower against the pound, with GBP/USD rising 0.30% to hit 1.6100. In the U.K., retail sales, including auto fuel, gained 1.8% in March crushing the median economists projection of a 0.05% increase.

Elsewhere, the greenback was up against the yen but lower against the Swiss franc, with USD/JPY advancing 0.14% to hit 81.72 and USD/CHF giving up 0.41% to hit 0.9112.

Pushing the yen lower, Bank of Japan Governor Masaaki Shirakawa stated that the nation still needs monetary stimulus during a speech in Washington.

The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.35% to hit 0.9922, AUD/USD gaining 0.22% to hit 1.0354 and NZD/USD gaining 0.15% to hit 0.8148.

Consumer price inflation in Canada rose less-than-expected last month, official data showed on Friday.

In a report, Statistics Canada said that Canadian consumer price inflation rose to a seasonally adjusted 0.4%, from 0.4% in the preceding month.

Analysts had expected Canadian consumer price inflation to rise 1.0% last month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded lower 0.37% at 79.40.