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FOREX-Dollar pinned near 1-month lows on weak data; pound volatile

Published 10/17/2019, 03:42 PM
Updated 10/17/2019, 03:48 PM
© Reuters.  FOREX-Dollar pinned near 1-month lows on weak data; pound volatile
USD/CHF
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DXY
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee
LONDON, Oct 17 (Reuters) - The dollar held near a one-month
low against its rivals on Thursday as weak data cast a shadow on
the outlook for the U.S. economy in the short term with the
British pound the only noticeable loser against the greenback on
Brexit nerves.
U.S. retail sales fell for the first time in seven months in
September while a report from the U.S. Federal Reserve described
the economy's progress in cautious terms. "This is a report which gives reasons to worry about the
U.S. outlook, but does not give a reason to panic," said Paul
Donovan, chief economist at UBS Global Wealth Management.
Against a basket of its rivals .DXY , the dollar was just a
whisker above a one-month low hit overnight. It weakened 0.3% to
a one-week low against the Swiss franc CHF= .
The dollar only managed to eke out some gains against the
struggling pound, which gyrated to the progress of last-minute
Brexit deal negotiations.
The leadership of Northern Ireland's Democratic Unionist
Party said it did not support proposed solutions to handling
Irish border checks, a major sticking point in negotiations over
the terms of Britain's departure from the bloc. Sterling slid as much as 0.6% against the dollar to $1.2748
GBP=D3 , and shed 0.5% versus the euro to as low as 86.81 pence
EURGBP=D3 , before steadying and recouping some losses.
The pound has surged some 5% since last week as the
negotiations between Britain and the European Union made
progress, hitting a five-month high in volatile trade.
Elsewhere, the Norwegian crown weakened to an all-time low
of 10.1800 against the euro EURNOK=D3 . Some analysts blamed
the crown's recent weakness on global trade jitters, while
others said the speed and magnitude of the drop were hard to
explain. The Australian dollar AUD=D3 held near the day's highs, up
0.3% against the dollar after jobs data showed buoyant hiring,
lowering chances of monetary easing in November. AU/



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