The US dollar ended trading lower across the board as economic data released from the United States on Friday did not provide incentive for the Federal Reserve to start monetary tightening soon.
US economic data released today was below market expectations for the most part. Both personal income and spending rose 0.1 percent last month while analysts had promised a 0.2 percent increase. The University of Michigan Consumer Sentiment was at 90.0 in October, below the average forecast of 92.6. The only positive surprise came from the Chicago Business Barometer that rose from 48.7 to 56.2 this month, exceeding the economists’ projections of 49.5.
Friday provided yet another bunch of data that was disappointing after Thursday did the same. Considering that the Fed signaled in its policy statement that timing for an interest rate lift-off is data-dependent, this means that monetary tightening in December does not look probable. And it is very bad for the dollar.
EUR/USD was up from 1.0985 to 1.1071 before backing of and closing at 1.1003. GBP/USD gained from 1.5311 to 1.5425. USD/JPY fell from 121.05 to 120.61.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment