Greenback strengthens ahead of a mix of US economic releases
Investors eyed the release of US personal spending and consumer sentiment data, as well as manufacturing activity report in the Chicago area for fresh clues on the health of the world’s largest economy.
The euro edged lower 0.35% to 1.1179 against the dollar. Official statistics released on Friday indicated that the eurozone’s consumer price inflation advanced by 0.4% in September, in accordance with forecasts, and following a print of 0.2% in the previous month.
Core CPI, excluding food, energy, tobacco and alcohol costs, increased by 0.8% this month, a tad below expectations for a 0.9% rise and the previous month’s 0.8% rise.
The data came out shortly after the release of a report showing that German retail sales declined 0.4% last month, missing expectations for a 0.3% drop.
The dollar was steady at 101.07 against the yen, after touching a one-week high of 101.86 on Thursday. Data released earlier in Japan revealed that household spending fell 3.7% in August, surprising expectations for a 1.0% drop.
A separate report indicated that Tokyo’s core CPI, excluding fresh food, declined by an annualised rate of 0.5%, against expectations of a 0.4% drop.
The sterling inched lower 0.11% at 1.2953 against the dollar, still close to last week’s one-month trough of 1.2912.
A report from the UK Office for National Statistics showed on Friday that GDP rose to 0.7% in the three months to July, up from a previous reading of 0.6%. Economists expected the GDP to rise to 0.6%.
On an annual basis, the GDP rose 2.1% in the second quarter, up from a previous reading of 1.9%, but missing expectations for a 2.2% increase.
Another report revealed that the UK current account deficit widened to £28.7 billion in the second quarter from £27.0 billion in the previous quarter. Economists had expected the deficit to widen to £30.5 billion.
The dollar also edged higher 0.35% to trade at 0.9695 against the Swiss franc.