Dollar Advances After Upward Revision To U.S. GDP Data
May 26 2017 - 4:21AM
RTTF2
The U.S. dollar climbed against its major rivals in the European
session on Friday, as the U.S. economy expanded more than initially
estimated in the first quarter and durable goods orders eased less
than expected in April, adding to hopes for a Fed rate hike next
month.
Data from the Commerce Department showed that the economy grew
much more than initially estimated in the first three months of the
year.
The gross domestic product climbed by 1.2 percent in the first
quarter compared to the previously reported 0.7 percent
increase.
Economists had been expecting a more modest upward revision to
the pace of GDP growth to approximately 0.9 percent.
A separate report showed that new orders for manufactured
durable goods pulled back by less than expected in the month of
April.
The report said durable goods orders slid by 0.7 percent in
April after jumping by an upwardly revised 2.3 percent in March.
Economists had expected orders to slump by 1.4 percent.
Excluding a drop in orders for transportation equipment, durable
goods orders still fell by 0.4 percent in April after climbing by
0.8 percent in March. Ex-transportation orders were expected to
rise by 0.4 percent.
Meanwhile, the G7 leaders are gathering for a two-day summit in
Italy today, with issues on trade and climate change to be the key
topics.
Talks are expected to be challenging, as the U.S. President
Donald Trump confronted with EU leaders at a Brussels meeting on
Thursday, accusing Germany for its trade polices.
The greenback rose against its major rivals in the Asian
session, with the exception of the Japanese yen.
Reversing from an early low of 1.1235 against the euro, the
greenback climbed to a 2-day high of 1.1181. The next possible
resistance for the greenback is seen around the 1.10 mark.
Survey results by Ifo showed that confidence among Germany's
exporters was the highest in nearly three-and-a-half years in May
as exports continue to rise.
The Ifo Export Expectations Index rose to 14.7 balance points in
May from 13.8 balance points in April, marking the highest level
since January 2014.
Extending early rally, the greenback firmed to more than a
4-week high of 1.2810 against the pound. Continuation of the
greenback's uptrend may see it challenging resistance around the
1.26 region.
The greenback bounced off to 0.9735 against the Swiss franc,
from a 4-day low of 0.9696 hit at 6:15 am ET. The currency is
heading to pierce a 2-day high of 0.9745 set in the Asian session.
On the upside, 0.99 is possibly seen as the next resistance level
for the greenback.
The greenback staged a tepid recovery to 111.19 against the yen,
from a 3-day low of 110.88 hit at 7:00 am ET. The pair was valued
at 111.83 when it closed Thursday's trading.
Data from the Ministry of Internal Affairs and Communications
showed that overall consumer prices in Japan gained 0.4 percent on
year in April. That was in line with expectations and up from 0.2
percent in March.
Core consumer prices were up 0.3 percent on year - shy of
forecasts for 0.4 percent and up from 0.2 percent in the previous
month.
On the flip side, the greenback declined to 0.7077 against the
NZ dollar, its lowest since March 21. Continuation of the
greenback's downtrend may see it challenging support around the
0.72 level.
The greenback was trading lower at 0.7461 against the aussie and
1.3453 against the loonie, after having advanced to multi-day highs
of 0.7422 and 1.3497, respectively. The greenback is likely to find
support around 0.76 against the aussie and 1.33 against the
loonie.
The University of Michigan's final consumer sentiment index for
May is due at 10:00 am ET.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024