Weak economic data pulls euro to more than two-year lows on Friday. Negative data sapped investor demand for the single currency.
Dismal business activity data from the euro area has pushed European bond yields lower across the board this week with concerns about a weak economy in Britain also weighing.
Against the greenback, the euro held firm at $1.0927, just above a May 2017 low of $1.0904.
On the other hand, the dollar benefited from some quarter-end rebalancing flows. Versus a basket of its rival, the greenback pushed 0.1% higher to 99.21, its highest in more than three weeks.
U.S. data might give a further boost to the broadly firm dollar with personal income and consumption data due later in the trading day. Both indicators are expected to show improved readings, signalling an economy broadly impervious to global trade tensions.
Strong data in the United States has pushed an economic surprise data index published by Citigroup to its highest since February 2018. In comparison, a similar index on Europe has fallen dramatically in recent days, signalling slowing economic activity.
Sterling was the other big loser in London trading. BoE policymaker Michael Saunders hinted at looser monetary policy if Brexit uncertainty remained prolonged against a backdrop of disappointing global growth.
START TRADINGForex – More than two-year lows for euro on weak data
Markets are digesting the impeachment probe launched into U.S. President Donald Trump. The latest headlines from the trade dispute between the United States and China weigh too.
The dollar eased against the trade-sensitive Australian and New Zealand dollars. Aussie and Kiwi gently rallied on hopes that next month’s U.S.-China trade talks will bring progress. Moves were slight, though, and neither strayed far from two-week troughs against the greenback.
The Canadian dollar was trading 0.1% higher at 1.3260 to the greenback, or 75.41 U.S. cents. The currency, which traded in a range of 1.3251 to 1.3278, was nearly unchanged for the week.
Sterling weakened 0.3% to a new two-week low of $1.2285 on Friday as Saunders comments raised expectations that the next move from the central bank could be a rate cut.
Gold prices fell on Friday and was on track for its third weekly fall for the month. Gold restrained as a slew of U.S. economic data beat expectations and the dollar held near multi-week highs against major currencies. Spot gold fell 0.4% to $1,499.22 per ounce at 0744 GMT, declining 1% for the week after a near 2% gain last week.
Oil prices fell and were heading for a weekly loss on a faster-than-expected recovery in Saudi output. Slowing Chinese economic growth dampened the demand outlook. U.S. crude oil futures were down 1.9% at $55.36 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money