Forex - Dollar index hits 1-week highs despite UoM report
Investing.com
Published May 26, 2017 10:49AM ET
Dollar rises against rivals amid U.S. optimism
Investing.com - The dollar reached one-week highs against other major currencies on Friday, as strong U.S. economic growth data overshadowed a disappointing report on U.S. consumer sentiment.
EUR/USD slid 0.32% to 1.1173, off session highs of 1.1235.
In a revised report, the University of Michigan said its consumer sentiment index hit 97.1 in May, down from a previous estimate of 97.7 and compared to expectations for a reading of 97.5.
The data came after the U.S. Bureau of Economic Analysis said gross domestic product rose 1.2% in the first quarter, up from a previous estimate of 0.7% and compared to expectations for a growth rate of 0.9%.
A separate report showed that U.S. durable goods orders fell 0.7% in April, compared to expectations for a 1.2% drop.
Core durable goods orders, which exclude transportation items, slipped 0.4% last month, disappointing expectations for a 0.5% rise.
The greenback had weakened broadly after the minutes of the Federal Reserve’s May meeting released on Wednesday showed that the central bank could raise interest rates soon but that "it would be prudent" to wait for more U.S. economic data.
GBP/USD tumbled 1.14% to trade at 1.2794, the lowest since April 25.
A YouGov poll on Thursday showed that U.K. Prime Minister Theresa May's Conservative Party’s lead ahead of the June 8 election was reduced to five points.
USD/JPY declined 0.49% to 111.28, while USD/CHF gained 0.32% to 0.9756.
The Australian dollar was weaker, with AUD/USD down 0.21% at 0.7438, while NZD/USD advanced 0.27% to 0.7041.
Meanwhile, USD/CAD slipped 0.14% to trade at 1.3465, re-approaching the previous session’s five-week low of 1.3385.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at a one-week high of 97.38.
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Written By: Investing.com
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