Forex - Dollar remains broadly lower as U.S. data disappoints


Shutterstock photo - - The dollar remained broadly lower against the other major currencies on Friday, as the release of mostly disappointing U.S. economic reports weighed on demand for the greenback.

In a revised report, the University of Michigan said its consumer sentiment index rose to 81.8 in July, from a reading of 81.3 the previous month, confounding expectations for a rise to 82.0.

The data came after the Labor Department said the U.S. economy added 209,000 jobs last mont, disappointing expectations for an increase of 233,000. The number of jobs added in June was revised up to a 298,000 gain from a previously estimated rise of 288,000.

The report also showed that the U.S. unemployment rate ticked up to 6.2% last month, from 6.1% in June. Analysts had expected the rate to remain unchanged in July.

However, the Institute of Supply Management reported that the U.S. manufacturing purchasing managers' index rose to 57.1 in July, from a reading of 55.3 in June, compared to expectations for an increase to 56.0.

The euro rose against the dollar, with EUR/USD up 0.28% to 1.3427.

Markit research group earlier said that Germany's manufacturing PMI fell to 52.4 last month from 52.9 in June. Analysts had expected the index to remain unchanged.

For the entire euro zone, Markit said the manufacturing PMI ticked down to 51.8 in July, from a reading of 51.9 the previous month. Analysts had also expected the index to remain unchanged.

The single currency also remained under pressure after official data on Thursday showed that the annual rate of inflation in the euro area slowed to a five year low of 0.4% in July from 0.5% in June.

The data added to pressure on the European Central Bank to implement further stimulus measures to shore up growth and stave off the threat of deflation in the currency bloc.

Sterling remained near fresh one-and-a-half month lows, with GBP/USD shedding 0.26% to 1.6842.

Markit said the U.K. manufacturing PMI fell to 55.4 last month, from a reading of 57.5 in June. Analysts had expected the index to slip to 57.2 in July.

Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY edging down 0.11% to 102.68 and with USD/CHF sliding 0.34% to 0.9057.

The dollar was also lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD adding 0.20% to 0.9313, NZD/USD edging up 0.19% to 0.8515 and with USD/CAD dipping 0.01% to 1.0904.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% at 81.40. offers an extensive set of professional tools for the financial markets.
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This article appears in: Investing , Forex and Currencies

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