Investing.com - The dollar extended its broad advance against
most major currencies on Friday amid widespread sentiments that the
Federal Reserve will soon begin to scale back stimulus programs.
Better-than-expected regional factory and housing data in the U.S.
on Thursday came a day after Fed Chairman Ben Bernanke said
stimulus programs could end if the economy show signs of
Monetary stimulus tools such as the Fed's monthly USD85 billion
bond-buying program weaken the dollar to spur recovery, and talk of
their dismantling can strengthen the U.S. currency.
In U.S. trading on Friday, EUR/USD was down 0.61% at 1.3139.
The dollar continued to climb in a session absent of major U.S.
economic data mainly on sentiments that recent indicators point to
an economy in less need of Federal Reserve support.
The Federal Reserve Bank of Philadelphia said Thursday that its
manufacturing index rose to 12.5 in June from -5.2 in May, well
above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2%
to 5.18 million units in May from April's total of 4.97 million,
far surpassing market calls for a 0.6% increase.
The greenback, meanwhile, was up against the pound, with GBP/USD
trading down 0.51% at 1.5429.
The dollar was up against the yen, with USD/JPY up 0.53% at 97.78,
and up against the Swiss franc, with USD/CHF trading up 0.75% at
The dollar was mixed against its cousins in Canada, Australia and
New Zealand, with USD/CAD up 0.68% at 1.0455, AUD/USD up 0.53% at
0.9246 and NZD/USD trading up 0.24% at 0.7776.
Canada's official core consumer price index, which excludes
volatile food and energy items, rose 0.2% in May, missing
expectations for a 0.3% gain after a 0.1% increase the previous
The broader consumer price index rose 0.2% last month,
disappointing expectations for a 0.4% increase, after a 0.2%
contraction in April.
A separate report showed that core retail sales in Canada,
excluding automobiles, fell 0.3% in April, compared to expectations
for a flat reading after a 0.3% decline the previous month.
Broader retail sales rose 0.1% in April, missing expectations for
0.2% increase, after a flat reading the previous month.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was up 0.67% at
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