* U.S. data shows solid economic strength
* U.S., China trade deal seen as mildly negative for dollar
* Swiss franc continues to gain
(New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, Jan 16 (Reuters) - The dollar index erased earlier
losses on Thursday after multiple data releases painted a
positive U.S. economic picture, but remained slightly lower on
the day after the United States and China made a preliminary
deal to de-escalate their trade war.
The Commerce Department said on Thursday retail sales
increased 0.3% last month. Data for November was also revised
upward to show retail sales gaining 0.3% instead of rising 0.2%,
as previously reported. A gauge of manufacturing activity in the U.S. Mid-Atlantic
region also rebounded in January to its highest level in eight
months, and the outlook is the brightest in more than a year and
a half, the Federal Reserve Bank of Philadelphia said.
Other data showed that the number of Americans filing for
unemployment benefits fell more than expected last week. data flurry was positive, particularly the Philly Fed
number,” said Greg Anderson, global head of foreign exchange
strategy at BMO Capital Markets in New York. It “reduces the
probability for a recession, which was low already.”
The dollar index .DXY was last 97.220, after falling to
97.085 overnight, which was the lowest since Jan. 8.
The dollar has weakened since the United States and China on
Wednesday signed a deal in which China will boost purchases of
U.S. goods and services by $200 billion over two years in
exchange for the rolling back of some tariffs. But 25% tariffs on a $250 billion array of Chinese
industrial goods and components used by U.S. manufacturers, and
China's retaliatory tariffs on over $100 billion in U.S. goods,
will remain.
“For the dollar, it's a mixed bag ... it should mean higher
U.S. growth this year, but it also means higher foreign growth
this year and less risks abroad, and that tends to pull capital
out of the U.S. and be dollar negative,” said Anderson.
The Swiss franc CHF= continued to gain against the dollar,
reaching 0.961 overnight, its strongest level since Sept. 2018.
The United States on Monday added Switzerland to its watch
list of currency manipulators, which analysts say could
discourage the Swiss National Bank (SNB) from intervening to try
to limit further appreciation of the franc.
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Currency bid prices at 9:26AM (1426 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1155 $1.1149 +0.05% -0.49% +1.1172 +1.1146
Dollar/Yen JPY= 110.0200 109.8800 +0.13% +1.07% +110.0600 +109.8600
Euro/Yen EURJPY= 122.74 122.52 +0.18% +0.65% +122.8600 +122.5100
Dollar/Swiss CHF= 0.9636 0.9641 -0.05% -0.43% +0.9650 +0.9614
Sterling/Dollar GBP= 1.3046 1.3036 +0.08% -1.61% +1.3074 +1.3026
Dollar/Canadian CAD= 1.3044 1.3041 +0.02% +0.45% +1.3048 +1.3032
Australian/Doll AUD= 0.6923 0.6902 +0.30% -1.40% +0.6933 +0.6901
ar
Euro/Swiss EURCHF= 1.0750 1.0748 +0.02% -0.94% +1.0759 +1.0734
Euro/Sterling EURGBP= 0.8548 0.8550 -0.02% +1.11% +0.8562 +0.8540
NZ NZD= 0.6658 0.6616 +0.63% -1.16% +0.6665 +0.6617
Dollar/Dollar
Dollar/Norway NOK= 8.8738 8.8610 +0.14% +1.08% +8.8814 +8.8470
Euro/Norway EURNOK= 9.8997 9.8794 +0.21% +0.63% +9.9116 +9.8710
Dollar/Sweden SEK= 9.4645 9.4616 +0.07% +1.26% +9.4781 +9.4528
Euro/Sweden EURSEK= 10.5590 10.5519 +0.07% +0.86% +10.5735 +10.5460