Dollar loses ground vs. rivals after U.S. economic reports
Investing.com — The dollar turned lower against other major currencies on Friday, after the release of tepid U.S. data, although hopes for an upcoming U.S. fiscal plan were expected to limit the greenback’s losses
The U.S. Commerce Department said on Friday that consumer spending increased as expected in August, while core inflation unexpectedly eased.
The greenback had strengthened broadly after U.S. President Donald Trump unveiled a plan on Wednesday calling for lower tax rates for businesses and individuals as part of a comprehensive overhaul of the U.S. tax code.
However, the proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
EUR/USD gained 0.33% to 1.1826, while GBP/USD slid 0.28% to 1.3404, not far from Thursday’s two-week lows of 1.3344.
The UK Office for National Statistics reported on Friday that the UK gross domestic product expanded 1.5% in the second quarter, year-over-year, down from a previous estimate of 1.7%.
On a quarterly basis, the UK economy grew 0.3% in the three months to June, in line with expectations.
In the euro zone, data on Friday showed that consumer price inflation remained stable in September, missing forecasts for a slight increase.
Elsewhere, the yen was steady with USD/JPY at 112.30, while USD/CHF edged down 0.18% to trade at 0.9686.
The Australian dollar remained weaker, with AUD/USD down 0.15% at 0.7844, while NZD/USD was little changed at 0.7233.
Meanwhile, USD/CAD rose 0.18% to trade at 1.2450 after Statistics Canada reported that the country’s economy stagnated in July, disappointing expectations for a growth rate of 0.1%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 92.82 by 08:40 a.m. ET (12:40 GMT), still close to Thursday’s one-month peak of 93.50.