By Joseph Adinolfi, MarketWatch
Pound trades at highest levels since early January
NEW YORK (MarketWatch) -- The dollar traded flat against its
rivals Friday as shifting growth expectations threatened the
dollar's seven-month long rally.
Recent weakness in U.S. data -- January retail-sales figures
slumped for the second month, and the Labor Department reported a
surprisingly high uptick in weekly jobless claims Thursday --
contrasted with stronger-than-expected growth in the eurozone
economy, and improved growth forecasts from the Bank of England, to
weigh on the dollar for a second session.
The ICE U.S. Dollar Index(DXY), which measures the dollar's
strength against a trade-weighted basket of six rival currencies,
was up 0.1% to 94.21750 after sliding nearly 1% in the prior
session.
"The recent moves in FX markets have caught many people off
guard," wrote Angus Campbell, senior analyst at FxPro. "Perhaps not
to the extent of the [Swiss National Bank] floor removal a month
ago, but the dollar strength of last year and the first part of
January has come to a grinding halt."
Eurostat said eurozone gross domestic product expanded by 0.3%
in the fourth quarter, sending European stocks to multi-year highs
and helping to stabilize the euro around the $1.14 level.
European stocks were on track to close at their highest levels
in years, as the Stoxx Europe 600 gained 2.25 points, or 0.6%, to
377.10, its highest level since 2007 and Germany's DAX (DAX) index
briefly traded at an all-time high above 11,000.
Economists surveyed by The Wall Street Journal had expected no
change from the 0.2% growth seen in the third quarter.
The euro (EURUSD) was at $1.1390, compared with $1.1407
Thursday. It was at 135.61 yen in recent trade, compared with
Yen135.66. Against the Britain's currency, the euro (EURGBP) was
buying 74.04 pence versus 74.13 pence on Thursday.
The pound traded at its highest level against the dollar since
early January, fueled by the BOE's suggestion on Thursday that it
could raise interest rates in 2016.
The pound (GBPUSD) traded at $1.5393, off an intraday high of
$1.5422. It traded at $1.5388 Thursday.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
