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FOREX-Dollar gains on U.S. economic optimism

Published 17/01/2020, 20:32
© Reuters.  FOREX-Dollar gains on U.S. economic optimism
EUR/USD
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(Recasts with dollar, adds quote, updates prices)

By Karen Brettell

NEW YORK, Jan 17 (Reuters) - The greenback rose to a one-week high against the euro on Friday as

economic data pointed to solid economic growth, and reduced fears about an impending slowdown.

U.S. homebuilding surged to a 13-year high in December as activity increased across the board,

suggesting the housing market recovery was back on track amid low mortgage rates. It comes after data on Thursday showed that U.S. retail sales increased for a third straight month in

December, while a gauge of manufacturing activity in the U.S. Mid-Atlantic region rebounded in January to

its highest level in eight months. "The last couple of sessions we've gotten some pretty good data," said Bipan Rai, North American head

of FX strategy at CIBC Capital Markets in Toronto.

"There was a little bit of concern by the Federal Reserve with regard to the health of the consumer

and household market in the U.S., but it seems like yesterday's retail sales numbers and also the housing

data from yesterday and today have assuaged some of those fears for the time being," Rai said.

The euro EUR= fell 0.41% against the dollar to $1.1089.

The Japanese yen was little changed on the day, after weakening earlier on Friday as record high

stocks reflected stronger risk appetite.

U.S. stock indexes were driven higher by optimism over corporate earnings, upbeat economic data and

indications of resilience in China's economy. .N

Data on Friday showed that China's economy ended the year on a firmer note, even as economic growth

cooled to its weakest in nearly 30 years. "December data signaled a strong finish for the Chinese economy and that suggests the Chinese economy

may be primed for a rebound in 2020," said Lee Hardman, a currency strategist at MUFG in London.

The yen rose hit 110.28, the weakest since May, before falling back to 110.12.

The offshore Chinese yuan CNH= also strengthened as far as 6.8567, the strongest since July.

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Currency bid prices at 2:20PM (1920 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1089 $1.1135 -0.41% -1.08% +1.1142 +1.1087

Dollar/Yen JPY= 110.1200 110.1400 -0.02% +1.16% +110.2800 +110.0600

Euro/Yen EURJPY= 122.14 122.67 -0.43% +0.16% +122.8300 +122.1300

Dollar/Swiss CHF= 0.9679 0.9644 +0.36% +0.01% +0.9695 +0.9646

Sterling/Dollar GBP= 1.3017 1.3076 -0.45% -1.83% +1.3117 +1.3017

Dollar/Canadian CAD= 1.3063 1.3040 +0.18% +0.59% +1.3075 +1.3034

Australian/Doll AUD= 0.6877 0.6898 -0.30% -2.09% +0.6911 +0.6873

Euro/Swiss EURCHF= 1.0735 1.0743 -0.07% -1.08% +1.0757 +1.0735

Euro/Sterling EURGBP= 0.8517 0.8513 +0.05% +0.75% +0.8531 +0.8488

NZ NZD= 0.6615 0.6638 -0.35% -1.80% +0.6650 +0.6608

Dollar/Dollar

Dollar/Norway NOK= 8.9081 8.8859 +0.25% +1.46% +8.9191 +8.8825

Euro/Norway EURNOK= 9.8775 9.8942 -0.17% +0.40% +9.9035 +9.8771

Dollar/Sweden SEK= 9.5163 9.4873 -0.14% +1.81% +9.5239 +9.4817

Euro/Sweden EURSEK= 10.5545 10.5695 -0.14% +0.81% +10.5767 +10.5380

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