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Dollar bounces back from disappointing U.S. data, more reports ahead

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Investing.com -

Investing.com - The dollar was broadly higher against a basket of other major currencies on Wednesday, as it recovered from the previous session's disappointing U.S. data and as investors eyed additional U.S. economic reports due later in the day.

The dollar regained some ground after the U.S. Commerce Department reported on Tuesday that retail sales rose 0.9% last month, disappointing expectations for a gain of 1.0%.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.31% to 99.32.

EUR/USD dropped 0.47% to 1.0605.

The euro remained under pressure as the European Central Bank's bond buying stimulus program continued to weigh on euro zone bond yields.

Sentiment on the single currency was also hit as uncertainty over Greece's bailout negotiations with its creditors continued to weigh.

The pound was also lower, with GBP/USD sliding 0.37% to 1.4727.

Elsewhere, the dollar was steady against the yen, with USD/JPY at 119.40 and higher against the Swiss franc, with USD/CHF rising 0.20% to 0.9744.

The Australian, New Zealand and Canadian dollars were broadly weaker, with AUD/USD declining 0.35% to 0.7600 and NZD/USD shedding 0.28% to 0.7501, while USD/CAD gained 0.26% to trade at 1.2519.

The export-related currencies came under pressure after data earlier showed that while China's economy grew 7.0% in the first quarter, matching forecasts, it was still the slowest rate of growth in six years.

Reports on retail sales and industrial output both fell short of forecasts, indicating that China needs to act to prevent a further slowdown in the economy.

China is Australia's biggest export partner and New Zealand's second biggest export partner.

Also Wednesday, the Westpac Banking Corporation said Australian consumer sentiment fell 3.2% this month, after a 1.2% decline in March.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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