Dollar Rises to Two-Week High as U.S. Data Buoy Economic OutlookBy and
Personal consumption, corporate profit data spur optimism
Greenback retreated earlier on report of Trump currency review
The dollar climbed to a two-week high against the euro after U.S. data showed gains in personal consumption and corporate profits.
The U.S. currency gained against most of its major peers, with the Bloomberg dollar index on track for its first weekly advance in three. The greenback wiped out an earlier retreat sparked by a CNBC report that the Trump administration is assessing the scope of its power to penalize countries whose currencies it says are undervalued.
- EUR/USD trading near new session low at 1.0683 as a fresh supply of EUR sellers emerges in late afternoon on cross pairs vs JPY, AUD and CAD, traders in New York said. USD/JPY trading near session high at 111.65; Bloomberg dollar spot index up 0.3%.
- EUR/GBP falls to intraday low at 0.8559 after earlier break below 50- and 200-day moving averages, which should cause some trading models to change direction, said Greg Anderson, global head of FX strategy at Bank of Montreal in New York. “I’d still be a seller of EUR/GBP all the way down through 0.8500,” he said.
- EUR was also pressured by consumer-price growth in Germany, which slowed to 1.5% in March from 2.2% the previous month
- The greenback edged down earlier on a report that President Trump’s economic team is looking at alternative strategies to punish what he calls unfair trade, according to CNBC, which cited two unidentified people who work in the administration and have direct knowledge of the review.
- U.S. 4Q GDP climbed 2.1% vs est. 2.0%. Personal consumption rose 3.5% after climbing 3.0% prior quarter. Corporate profits in the U.S. jumped 9.3% from a year earlier, the most since 2012.
- Mexico’s peso fluctuates near highest since November amid conflicting reports on Nafta changes; Banxico raises key rate to 6.50%, as expected by 18 out of 26 economists in Bloomberg survey
— With assistance by George Lei
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