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Dollar moves higher after upbeat U.S. economic reports

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Investing.com -

Investing.com - The dollar moved higher against a basket of other major currencies on Friday, after the release of upbeat U.S. inflation and housing data added to expectations for a rate hike in the near future.

Data on Friday showed that the U.S. consumer price index rose 0.3% in June, in line with expectations and after a 0.4% gain the previous month. On a yearly basis, consumer prices rose 0.1% in June, in line with market expectations.

Core consumer prices, which exclude food and energy, rose 0.2% last month, in line with expectations and after an uptick of 0.1% in May.

A separate report showed that U.S. housing starts rose 9.8% to 1.174 million units in June from a revised total of 1.069 million units the previous month. Analysts had expected housing starts to increase by 6.2% last month.

U.S. building permits rose 7.4% to 1.343 million units last month from 1.250 million units in May, confounding expectations for a 11.8% drop.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.13% at 97.89, the highest level since June 2.

EUR/USD edged down 0.08% to 1.0866 after hitting highs of 1.0907 earlier in the session.

The euro had found some support after euro zone ministers agreed on Thursday to give Greece a €7 billion bridging loan from a European Union-wide fund to keep its finances afloat until a bailout is approved.

The loan was expected to be confirmed on Friday by all EU member states.

The news came after the European Central Bank increased its emergency lending to Greek banks by €900 million and added that it is operating under the assumption that Greece will remain in the euro zone.

The pound also turned lower, with GBP/USD down 0.18% at 1.5579.

Elsewhere, the dollar was steady against the yen, with USD/JPY at three-week highs of 124.13 and higher against the Swiss franc, with USD/CHF adding 0.22% to 0.9601.

The Australian dollar was lower, with AUD/USD down 0.28% at 0.7386, while NZD/USD rose 0.34% to 0.6535, off Thursday's six-year lows of 0.6498

USD/CAD edged up 0.20% to trade at six-year highs of 1.2988 after data showed that Canada's consumer prices rose 0.2% in June, in line with expectations and after an increase of 0.6% the previous month.

On a yearly basis, consumer prices increased by 1.0% last month, in line with market expectations.

Core consumer prices, which exclude the eight most volatile items, were flat in June, compared to expectations for a 0.1% slip and after a 0.4% gain in May.

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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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