Investing.com - The dollar pushed higher against the other major
currencies on Friday, as expectations for additional stimulus
measures in the euro zone and Japan supported the greenback and as
investors eyed upcoming U.S. housing sector data due later in the
EUR/USD dropped 0.66% to 1.0802.
The euro remained under pressure after European Central Bank
President Mario Draghi said on Thursday that it would be necessary
to "review and reconsider" the bank's monetary policy stance at its
next meeting in March, when new economic projections become
Adding to those comments on Friday morning, Draghi said the bank
has "plenty of instruments" to reach price stability in the euro
Earlier Friday, research group Markit said the euro zone
composite purchasing managers' index, which includes manufacturing
and service sector activity, ticked down to 53.5 in January from
54.3 in December.
USD/JPY climbed 0.45% to 118.24.
Sentiment on the yen was vulnerable after Bank of Japan Governor
Haruhiko Kuroda said on Thursday that he is not thinking of
adopting a negative interest rate policy now, signalling that any
further monetary easing will likely take the form of an expansion
of its current asset-buying program.
Elsewhere, the dollar was lower against the pound, with GBP/USD
up 0.72% at 1.4322, off Thursday's seven-year lows of 1.4078, and
was higher against the Swiss franc, with USD/CHF advancing 0.73% to
The U.K. Office for National Statistics repored on Friday that
retail sales declined by 1.0% in December, confounding expectations
for a 0.3% slip. Year-on-year, retail sales rose 2.6%.
Core retail sales, which exclude auto sales and fuel, fell 0.9%
in December, compared to expectations for a 0.3% downtick.
A separate report showed that U.K. public sector net borrowing
rose by £6.87 billion in December, less than the expected increase
of £10.35 billion.
Meanwhile, the Canadian dollar remained under pressure after
fell below 28$ once again Thursday, but they regained some strength
on Friday morning. USD/CAD was down 0.70% at a one-and-a-half week
low of 1.4167, pulling away from Wednesday's 13-year peak of
In Canada, data showed that retail sales rose 1.7% in November,
beating expectations for an uptick of 0.2%. Core retail sales,
which exclude automobiles, were up 1.1% in November, compared to
expectations for a 0.4% gain.
A separate report showed that Canada's consumer price index
slipped 0.5% in December, compared to expectations for a 0.4%
downtick. Year-on-year, consumer prices increased by 1.6%.
Core CPI, which excludes the eight most volatile items, fell
0.4% last month, confounding expectations for a 0.3% slip.
The Australian dollar was higher, with AUD/USD up 0.26% at
0.7018, while NZD/USD slid 0.48% to trade at 0.6498.
The U.S. dollar index, which measures the greenback's strength
against a trade-weighted basket of six major currencies, was up
0.37% at 99.51, re-approaching Thursday's one-and-a-half month
highs of 99.89.
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