Dollar trims gains as US data disappoints ~ forex trading trends tips
On Friday the dollar declined versus its rivals, after data signaled the U.S. economy grew at a slower rate than expected in the fourth quarter, driving fresh concerns over the strength of the recovery.
The U.S. Bureau of Economic Analysis said in a report that fourth quarter gross domestic product rose 2.2%, in line with a preliminary estimate but below expectations for a growth rate of 2.4%.
Later in the day, the U.S. is expected to issue the revised reading of the University of Michigan consumer sentiment index.
EUR/USD was down 0.20% to 1.0864, just off session lows of 1.0801.
Sentiment on the euro remained fragile, as Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month. The Greek authorities had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month. By next Monday Athens is expected to provide a detailed list of proposed reforms to its eurozone creditors.
The pound remained higher, with GBP/USD up 0.38% to 1.4909.
Demand for the British currency was firmer after Bank of England Governor Mark Carney said that the central banks next move on interest rates would be upward.
Earlier Friday, the Nationwide Building Society reported that U.K. house prices rose 0.1% this month, disappointing expectations for a 0.2% gain, after a 0.1% downtick in February.
Elsewhere, the dollar edged lower against the yen, with USD/JPY easing 0.08% to 119.08 and remained moderately higher against the Swiss franc, with USD/CHF up 0.10% to 0.9639.
In Japan, official data earlier showed that household spending rose 0.8% in February, exceeding expectations for a 0.5% gain, after a 0.3% fall the previous month. Another report showed that consumer price inflation in Japan climbed at an annualized rate of 2.0% in February, compared to expectations for 2.1% and down from 2.2% in January.
Figures also indicated that Japans retail sales dropped at an annualized rate of 1.8% last month, confounding expectations for a 1.5% decline, after a 2.0% drop in January.
The Australian and New Zealand remained broadly weaker, with AUD/USD retreating 0.38% to 0.7799 and NZD/USD shedding 0.23% to 0.7583. Meanwhile, USD/CAD held steady at 1.2487.
The commodity-exposed Canadian dollar also weakened due to dropping oil prices, as U.S. data overshadowed fears over a supply disruption in the Middle East following news Saudi Arabia launched air strikes in Yemen this week to counter Iran-backed Houthi rebels.
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