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Forex - Dollar edges lower as German sentiment report surprises

Published 11/22/2013, 03:35 PM
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Investing.com - The dollar traded lower against most major currencies on Friday mainly as investors shed safe-haven greenback positions after a widely-watched German sentiment data pleased investors.

In U.S. trading on Friday, EUR/USD was up 0.50% at 1.3548.

The euro rose in a risk-on trading session after the Ifo Institute for Economic Research reported earlier that Germany's business climate index rose to a 19-month high of 109.3 in November from 107.4 in October.

Analysts were expecting the index to rise to 107.7 this month, and the better-than-expected reading sparked hopes for a more robust European recovery.

Also in Germany, data revealed the country's gross domestic product expanded 0.3% in the third quarter, in line with expectations.

The euro saw added demand after European Central Bank President Mario Draghi on Thursday downplayed recent media reports that monetary authorities were considering cutting deposit rates into negative territory.

The dollar, meanwhile, saw some support after Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.

Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.

The greenback was down against the pound, with GBP/USD up 0.08% at 1.6212.

The dollar was up against the yen, with USD/JPY up 0.15% at 101.32, and down against the Swiss franc, with USD/CHF down 0.64% at 0.9070.

The yen came under pressure after Bank of Japan Governor Haruhiko Kuroda said he will do everything possible to restrict an increase in long-term yields.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.08% at 1.0528, AUD/USD down 0.68% at 0.9172 and NZD/USD trading down 0.18% at 0.8192.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.34% at 80.73.








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