Euro Steady Against Dollar; Sterling Upside To Remain Limited
ICM Brokers | Sep 01, 2014 02:17AM ET
EUR/USD
The euro held steady against the US dollar on Friday, hovering close to 11-month lows as the release of strong U.S. consumer sentiment data added to the opinion that the U.S. economic recovery is on track. The University of Michigan said its consumer sentiment index was revised to 82.5 this month, up from a preliminary reading of 79.2, exceeding expectations for a reading of 80.1. Data also showed that the Chicago purchasing managers' index rose to 64.3 in August, from a reading of 52.6 the previous month, beating expectations for an increase to 56.0. The report also showed that U.S. personal income rose 0.2% in July, less than the expected 0.3% gain. The change in personal income for June was revised to a 0.5% increase from a previously estimated 0.4% rise. In the euro zone, preliminary data showed that consumer price inflation ticked down to an annualized rate of 0.3% this month from 0.4% in July , in line with expectations.
GBP/USD
The pound held gains against the U.S. dollar on Friday, but sterling's upside was expected to remain limited as strong U.S. consumer sentiment data added further support for the greenback. The University of Michigan said its consumer sentiment index was revised to 82.5 this month, up from a preliminary reading of 79.2, exceeding expectations for a reading of 80.1. Data also showed that the Chicago purchasing managers' index rose to 64.3 in August, from a reading of 52.6 the previous month, beating expectations for an increase to 56.0. In the U.K., the Nationwide Building Society said that house price inflation climbed 0.8% this month, exceeding expectations for a 0.1% gain. For July, the change in house price inflation was revised to a 0.2% increase from a previously estimated 0.1% rise.
USD/JPY
The U.S. dollar edged higher against the yen on Friday, after mixed Japanese data as Thursday's upbeat economic reports from the U.S. continued to support demand for the greenback. Official data earlier showed that household spending in Japan dropped at a annualized rate of 5.7% in July, compared to expectations for a 3.0% decline, after a 3.0% fall the previous month. A preliminary report also showed that Japan's industrial production rose 0.2% last month, disappointing expectations for an increase of 1.0%, after a 3.4% drop in June. On a more positive note, retail sales in Japan rose at annualized rate of 0.5% in July, beating expectations for a 0.1% uptick, after a 0.6% fall in June.
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