Monday, November 20, 2017

© Reuters.  Dollar little changed vs. rivals, U.S. tax reform plans still support© Reuters. Dollar little changed vs. rivals, U.S. tax reform plans still support

Investing.com – The dollar held steady close to one-month highs against the other major currencies on Friday, despite the release of tepid U.S. data, although hopes for an upcoming U.S. fiscal plan were expected to limit the greenback’s losses

In a revised report, the University of Michigan said its consumer sentiment index hit 95.1 in September, down from a previous estimate of 95.3.

The data came after the U.S. Commerce Department said consumer spending increased as expected in August, while core inflation unexpectedly eased.

The greenback had strengthened broadly after U.S. President Donald Trump unveiled a plan on Wednesday calling for lower tax rates for businesses and individuals as part of a comprehensive overhaul of the U.S. tax code.

However, the proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.

EUR/USD was up 0.25% at 1.1814, while GBP/USD slid 0.42% to 1.3386, not far from Thursday’s two-week lows of 1.3344.

The UK Office for National Statistics reported on Friday that the UK gross domestic product expanded 1.5% in the second quarter, year-over-year, down from a previous estimate of 1.7%.

On a quarterly basis, the UK economy grew 0.3% in the three months to June, in line with expectations.

In the euro zone, data on Friday showed that consumer price inflation remained stable in September, missing forecasts for a slight increase.

Elsewhere, the yen turned lower, with USD/JPY up 0.15% at 112.45, while USD/CHF edged down 0.19% to trade at 0.9684.

The Australian dollar remained weaker, with AUD/USD down 0.22% at 0.7838, while NZD/USD was little changed at 0.7232.

Meanwhile, USD/CAD climbed 0.51% to trade at 1.2490, re-approaching Thursday’s three-week peak of 1.2519.

The loonie weakened after Statistics Canada reported on Friday that the country’s economy stagnated in July, disappointing expectations for a growth rate of 0.1%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.92 by 10:50 a.m. ET (14:50 GMT), not far from Thursday’s one-month highs of 93.50.

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