The dollar dipped to a four-day low against major currencies on Friday and the euro rose on the recent raft of robust data.
Traders
were looking to U.S. inflation data due next week to provide clues on
the U.S. Federal Reserve's likely interest rate policy.
The dollar index - which measures the greenback against a basket of six major currencies, the euro the heaviest weighted among them - inched down by a quarter of a percent as the euro hit $1.1180, its highest since Monday.
The European Central Bank is deciding when and how quickly to wind back its expansive quantitative easing (QE) programme.
UBS currency strategist Daniel Trum, however, in Zurich, said currency markets were not showing great sensitivity to data at the moment unless they were particularly weak or strong. He said the euro had been lifted this week by consumer confidence hitting a 16-year high in June.
The dollar peaked at a one-month high on Tuesday after the Federal Reserve hiked interest rates last week and left the door open for further monetary tightening later in the year. But it has been stuck in a tight range since, awaiting fresh catalysts.
U.S. data due next week include the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index.
Exactly a year after Britain voted to leave the European Union, sterling was almost half a percent stronger on the day at $1.2738, with some investors betting the Bank of England could raise interest rates as soon as August.
In the year since the vote, the pound has fallen more than 15 percent against the dollar and almost 13 percent versus the euro.
The dollar index - which measures the greenback against a basket of six major currencies, the euro the heaviest weighted among them - inched down by a quarter of a percent as the euro hit $1.1180, its highest since Monday.
The European Central Bank is deciding when and how quickly to wind back its expansive quantitative easing (QE) programme.
UBS currency strategist Daniel Trum, however, in Zurich, said currency markets were not showing great sensitivity to data at the moment unless they were particularly weak or strong. He said the euro had been lifted this week by consumer confidence hitting a 16-year high in June.
The dollar peaked at a one-month high on Tuesday after the Federal Reserve hiked interest rates last week and left the door open for further monetary tightening later in the year. But it has been stuck in a tight range since, awaiting fresh catalysts.
U.S. data due next week include the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index.
Exactly a year after Britain voted to leave the European Union, sterling was almost half a percent stronger on the day at $1.2738, with some investors betting the Bank of England could raise interest rates as soon as August.
In the year since the vote, the pound has fallen more than 15 percent against the dollar and almost 13 percent versus the euro.
No comments:
Post a Comment