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Forex - Dollar pushes lower as Empire State disappoints

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Shutterstock photo - - The dollar pushed lower against a basket of other major currencies on Friday, as the release of downbeat manufacturing data from New York dented demand for the greenback and as markets still eyed upcoming U.S. reports for further indications on the strength of the economy.

In a report, the New York Federal Reserve said that its Empire State manufacturing index fell to a four-month low of 14.7 this month, from a reading of 25.6 in July, confounding expectations for a decline to 20.0.

Data also showed that U.S. producer price inflation rose 0.1% last month, in line with expectations, after a 0.4% increase in June.

Core producer price inflation, which excludes food, energy and trade, rose 0.2% in July, in line with market projections, and after a 0.2% gain the previous month.

EUR/USD rose 0.27% to 1.3401, but gains were held in check after preliminary data on Thursday showed the euro area economy failed to grow in the three months to June.

The dollar was higher against the yen, with USD/JPY up 0.23% to 102.69, but lower against the Swiss franc, with USD/CHF shedding 0.29% to 0.9041.

The pound held steady, still close to four month lows, with GBP/USD at 1.6693.

Sterling showed little reaction after official data showed, in a second estimate, that U.K. gross domestic product grew 0.8% in the second quarter, in line with market expectations.

Year-on-year, the U.K. GDP expanded at a rate of 3.2%, compared to expectations for 3.1% growth.

The Canadian dollar hit two-and-a-half week highs, with USD/CAD down 0.26% to 1.0875 after Statistics Canada said, in a revised report, that the economy added 41,700 jobs last month, beating expectations for an increase of 20,000 and after a 9,400 decline in June.

Canada's statistics agency had announced Tuesday that an error in the previous week's employment report had come to light and a review had been launched.

Canada's unemployment rate still remained at 7.0% for July, in line with market expectations and down from 7.1% in June.

A separate report showed that manufacturing sales in Canada rose 0.6% in June, compared to expectations for a 0.5% gain. May's figure was revised to a 1.7% increase from a previously estimated 1.6% rise.

AUD/USD was steady at 0.9317, while NZD/USD edged up 0.07% to 0.8498.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.17% to 81.50.

Later in the day, the U.S. was to release a report on industrial output, as well as preliminary data on consumer sentiment. offers an extensive set of professional tools for the financial markets.

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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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