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Dollar broadly lower vs. rivals as U.S. GDP still weighs

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Investing.com -

Investing.com - The dollar was broadly lower against the other major currencies on Friday, as Thursday's downbeat U.S. economic growth data continued to weigh on demand for the greenback, while markets eyed upcoming U.S. data due later in the day.

The dollar was steady against the euro, with EUR/USD inching up 0.05% to 1.3609.

The dollar remained under presssure after the Bureau of Economic Analysis on Thursday said U.S. gross domestic product contracted 1.0% in the first quarter, after the preliminary estimate showed growth of 0.1%.

Market expectations had been for a 0.5% contraction. It was the first decline in U.S. GDP since the first quarter of 2011.

Losses were limited however as the Department of Labor said in a separate report that the number of people who filed for unemployment assistance in the U.S. last week fell by 27,000 to 300,000, compared to expectations for a decline of 9,000.

In the euro zone, official data earlier showed that German retail sales fell 0.9% last month, confounding expectations for a 0.4% rise, after a 0.1% uptick in April, whose figure was revised from a previously estimated 0.7% fall.

The pound was higher against the dollar, with GBP/USD adding 0.10% to 1.6733.

The dollar was lower against the yen and the Swiss franc, with USD/JPY slipping 0.14% to 101.65 and with USD/CHF edging down 0.09% to 0.8972.

In Japan, official data showed that household spending fell by an annualized rate of 4.6% in April, compared to expectations for a 3.2% decline, after a 7.2% increase the previous month.

Data also showed that Japan's core consumer price inflation, which excludes fresh food, rose at an annual rate of 3.2% this month, more than the expected 3.1% gain, after a 1.3% increase in April.

Separately, in a preliminary report, government data showed that industrial production in Japan dropped 2.5% last month, more than the expected 2% decline, after a 0.7% slip in March.

Meanwhile, Switzerland's KOF economic barometer slipped to 99.80 this month, from a reading of 101.80 in April, whose figure was revised down from a previously estimated 102.00. Analysts had expected the barometer to slip to 101.70 in May.

The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD easing up 0.08% to 0.9315, NZD/USD up 0.06% to 0.8491 and USD/CAD dipping 0.06% to 1.0830.

Earlier Friday, official data showed that building consents in New Zealand rose 1.5% in April, confounding expectations for a 3.5% drop, after an upwardly revised 9.2% increase in March.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% to 80.50.

Later in the day, the U.S. was to release a report on personal income and expenditure, as well as revised data from the University of Michigan on consumer sentiment.

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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.

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