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Dollar steady to higher vs. rivals in cautious trade

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Investing.com - The U.S. dollar was steady to higher against the other major currencies on Friday, ahead of the release of U.S. economic data, as investors hoped for quick progress in key U.S. budget negotiations.

During European morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.36% to 1.3190.

The euro erased gains against the dollar after Markit research group said that the euro zone's retail purchasing managers' index deteriorated to 44.5 in December from a reading of 45.8 the previous month.

The report came after official data showed that French consumer spending rose 0.2% in November, more than the expected 0.1% increase and following a 0.1% fall the previous month.

Meanwhile, markets were jittery as U.S. President Barack Obama was to meet congressional leaders later Friday at the White House for last-minute talks on a "fiscal cliff" deal to avoid automatic tax increases and broad spending cuts that threaten the US economy's recovery.

The meeting comes just four days before the government goes over the so-called fiscal cliff, assuming no deal is reached. Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

The greenback was steady against the pound, with GBP/USD dipping 0.02% to 1.6096.

Elsewhere, the greenback was lower against the yen, with USD/JPY slipping 0.11% to trade at 85.97, but higher against the Swiss franc, with USD/CHF rising 0.32% to 0.9163.

Earlier in the day, Markit said Japan's PMI deteriorated to 45.0 in December from a reading of 46.5 the previous month.

A separate report showed that industrial production in Japan dropped far more-than-expected in November, declining 1.7% after a 1.6% increase the previous month. Analysts had expected industrial production to fall 0.5% last month.

Official data also showed that Japan's retail sales rose by 1.3% in November, more than the expected 1.1% increase, after a 1.2% drop the previous month.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.02% to 0.9954, AUD/USD adding 0.04% to 1.0381 and NZD/USD edging 0.14% higher to 0.8222.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to 79.92.

Later in the day, the U.S. was to publish data on pending home sales, as well as a report on business conditions in the Chicago area and official data on crude oil stockpiles and natural gas inventories.

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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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