Forex – Dollar Little Changed After North Korea Test, U.S. Data on Tap


© Reuters. Dollar holds steady vs. rivals ahead of U.S. economic reports

Investing.com – The dollar was little changed against other major currencies on Friday, as markets awaited the release of additional U.S. economic reports due later in the day and as geopolitical tensions re-emerged following a new missile test by North Korea.

USD/JPY was up 0.20% at 110.47, while USD/CHF edged up 0.10% to trade at 0.9637.

The yen hit a seven-week high against the dollar late Thursday, following news North Korea fired a missile over Japan into the Pacific Ocean.

EUR/USD held steady at 1.1912.

The greenback found support after the U.S. Commerce Department reported on Thursday that consumer price inflation rose more than expected in August.

The strong inflation data added was seen as increasing the chances of an additional rate hike by the Federal Reserve this year.

A separate report showed that initial jobless claims unexpectedly declined to 284,000 last week.

Investors were eyeing reports on U.S. retail sales, industrial production and consumer sentiment, due later Friday for further indications on the strength of the economy.

GBP/USD was also almost unchanged at a 13-month peak of 1.3404, still supported by the Bank of England’s indications on Thursday that interest rates could rise faster than expected amid accelerating inflation.

Elsewhere, the New Zealand dollar was stronger, with NZD/USD up 0.36% at 0.7247 after data showed that the Business NZ Manufacturing Index rose to 57.9 in August from 55.4 the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.09 by 02:10 a.m. ET (06:10 GMT), after hitting a one-and-a-half week high of 92.66 overnight.

Leave a Reply