🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

FOREX-Dollar retreats on recent round of weak U.S. data; sterling, euro gain

Published 12/05/2019, 11:59 PM
Updated 12/06/2019, 12:00 AM
© Reuters.  FOREX-Dollar retreats on recent round of weak U.S. data; sterling, euro gain
EUR/USD
-
USD/JPY
-
DXY
-

* Dollar's Trump bump runs out of puff
* Better-than-expected U.S. data on Thursday fails to lift dollar
* Sterling best performer this week
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 5 (Reuters) - The dollar fell for a fifth straight session on Thursday, undermined by a
recent slew of weaker-than-expected U.S. economic data and this week's robust performance by the euro and
the British pound.
The Federal Reserve, at its last monetary policy meeting, said it was on hold after cutting interest
rates three times this year. But some analysts suggested that the Fed may have to reconsider that stance
if U.S. economic data continues to underwhelm going forward.
"You're looking at concerns that the U.S. economy is yet again slowing down just based on some poor
numbers out of both ISM (Institute for Supply Management) numbers," said Joe Trevisani, senior analyst at
FXStreet.com.
"I don't think we'll get a weak number though on payrolls on Friday, which is the next big data, but
until you get a good number on manufacturing, and here we go again with the U.S.-China trade problem,
there's always going to be concern that the U.S. economy is not going to fulfil its potential," he added.
Most currencies traded in tight ranges after turmoil induced by conflicting headlines on the fate of a
preliminary U.S.-China trade deal and the lack of clarity on whether any kind of agreement can be reached
before Dec. 15, when additional U.S. tariffs kick in on Chinese goods. But focus was also on how much damage the trade war is causing and whether the signs of economic
stabilisation seen in the euro zone and Chinese data can continue.
German industrial orders fell unexpectedly in October, data showed on Thursday.
U.S. reports on Thursday such as weekly jobless claims and the trade deficit were mostly better than
expected, but they are second-tier data that has little bearing on the Fed's monetary policy action.
The trade deficit dropped to its lowest level in nearly 1-1/2 years in October to $47.2 billion, the
smallest since May 2018. Initial claims for state unemployment benefits, on the other hand, dropped 10,000
to a seasonally adjusted 203,000 for the week ended Nov. 30, the lowest level since mid-April.
That data followed Wednesday's dismal figures on private payrolls and services activity, and Monday's
poor U.S. manufacturing activity index and construction spending figures Meanwhile, manufacturing activity in the euro zone beat expectations.
In late morning trading, the dollar index was down 0.2% at 97.454 .DXY .
The euro EUR= rose 0.2% versus the dollar to $1.1086, while the dollar slipped 0.1% against the yen
to 108.78 yen JPY= .
Sterling is this week's best performer, up more than 1.5% this week to the dollar, as it appears
likely that the ruling Conservative Party will win a majority in next week's election and end 3-1/2 years
of Brexit-related uncertainty by taking Britain out of the European Union.
The British pound traded at a new seven-month high of $1.3146 and extended gains against the euro to a
new 2-1/2-year high of 84.31 pence
The pound was last up 0.3% versus the dollar at $1.3138 GBP=D3 .

========================================================
Currency bid prices at 10:38AM (1538 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1093 $1.1076 +0.15% -3.28% +1.1104 +1.1078
Dollar/Yen JPY= 108.7400 108.8500 -0.10% -1.38% +108.9900 +108.7300
Euro/Yen EURJPY= 120.64 120.58 +0.05% -4.42% +120.8900 +120.5600
Dollar/Swiss CHF= 0.9883 0.9884 -0.01% +0.70% +0.9895 +0.9874
Sterling/Dollar GBP= 1.3143 1.3103 +0.31% +3.03% +1.3158 +1.3104
Dollar/Canadian CAD= 1.3180 1.3199 -0.14% -3.35% +1.3203 +1.3158
Australian/Doll AUD= 0.6824 0.6849 -0.37% -3.22% +0.6855 +0.6822
ar
Euro/Swiss EURCHF= 1.0964 1.0951 +0.12% -2.58% +1.0982 +1.0942
Euro/Sterling EURGBP= 0.8438 0.8452 -0.17% -6.08% +0.8457 +0.8431
NZ NZD= 0.6527 0.6527 +0.00% -2.83% +0.6562 +0.6521
Dollar/Dollar
Dollar/Norway NOK= 9.1453 9.1726 -0.30% +5.86% +9.1772 +9.1405
Euro/Norway EURNOK= 10.1454 10.1620 -0.16% +2.42% +10.1685 +10.1320
Dollar/Sweden SEK= 9.4965 9.5113 -0.03% +5.94% +9.5250 +9.4911
Euro/Sweden EURSEK= 10.5336 10.5369 -0.03% +2.63% +10.5475 +10.5240

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.