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Dollar remains broadly higher on strong U.S. data

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Investing.com - The U.S. dollar remained broadly higher against the other major currencies on Friday, after strong U.S. data added to expectations for the Federal Reserve to scale down its stimulus program, sending the greenback broadly higher.

During U.S. morning trade, the dollar was higher against the euro, with EUR/USD retreating 0.69% to 1.2957.

The greenback strengthened broadly after revised data showed that the University of Michigan's consumer sentiment index rose to 84.5 in May, from a reading of 83.7 the previous month. Analysts had expected the index to remain unchanged this month.

A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month, from a reading of 49.0 in April, beating expectations for a rise to 50.0.

The reports came after official data showed that U.S. personal spending fell 0.2% in April, confounding expectations for a 0.1% rise, after a 0.1% increase the previous month.

The euro came under pressure after official data showed that the unemployment rate in the euro zone rose to a new record high of 12.2% in April, from 12.1% the previous month, in line with expectations.

Separately, a preliminary report showed that the bloc's consumer price index rose to an annualized rate of 1.4% this month, from 1.2% in April, as anticipated.

In Germany, Destatits said retail sales fell 0.4% in April, disappointing expectations for a 0.2% rise, after a 0.1% decline the previous month.

The greenback was also higher against the pound, with GBP/USD declining 0.51% to 1.5153.

In a report, the Bank of England said that net lending to individuals rose by GBP1.4 billion in April, beating expectations for a GBP0.9 billion increase, after a GBP1.1 billion rise the previous month.

Elsewhere, the greenback was lower against the yen, with USD/JPY shedding 0.31% to trade at 101.04, but higher against the Swiss franc with USD/CHF advancing 0.76% to 0.9604.

In Japan, preliminary data showed that industrial production in Japan rose 1.7% in April, beating expectations for a 0.6% rise, after a 0.9% increase the previous month.

A separate report showed that household spending in Japan rose less-than-expected last month, advancing 1.5%, after a 5.2% increase in March. Analysts had expected household spending to rise 3.1% in April.

Meanwhile, the KOF economic barometer for Switzerland rose to 1.10 this month, from a reading of 1.04 in April, beating expectations for a rise to 1.08.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.51% to 1.0349, AUD/USD dropping 0.85% to 0.9579 and NZD/USD tumbling 1.34% to 0.7964.

Official data showed that Canada gross domestic product rose 0.2% in March, beating expectations for a 0.1% rise, after an increase of 0.3% the previous month.

Data earlier showed that New Zealand's ANZ business confidence index rose to 41.8 in May, from a reading of 32.3 the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.64% to 83.58.

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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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