* U.S. data shows solid economic strength
* U.S., China trade deal seen as mildly negative for dollar
(Updates prices)
By Karen Brettell
NEW YORK, Jan 16 (Reuters) - The dollar gained on Thursday
after multiple data releases painted a positive U.S. economic
picture, reversing earlier weakness following the preliminary
deal between the United States and China to de-escalate their
trade war.
U.S. retail sales increased for a third straight month in
December, with households buying a range of goods even as they
cut back on purchases of motor vehicles, suggesting the economy
maintained a moderate growth pace at the end of
2019. A gauge of manufacturing activity in the U.S. Mid-Atlantic
region also rebounded in January to its highest level in eight
months, and the outlook is the brightest in more than a year and
a half, the Federal Reserve Bank of Philadelphia said.
Other data showed that the number of Americans filing for
unemployment benefits fell more than expected last week. data flurry was positive, particularly the Philly Fed
number,” said Greg Anderson, global head of foreign exchange
strategy at BMO Capital Markets in New York. It “reduces the
probability for a recession, which was low already.”
The dollar index .DXY was last 97.329, up 0.10% on the
day, after falling to 97.085 overnight, which was the lowest
since Jan. 8.
The dollar has weakened since the United States and China on
Wednesday signed a deal in which China will boost purchases of
U.S. goods and services by $200 billion over two years in
exchange for the rolling back of some tariffs. But 25% tariffs on a $250 billion array of Chinese
industrial goods and components used by U.S. manufacturers, and
China's retaliatory tariffs on over $100 billion in U.S. goods,
will remain.
“For the dollar, it's a mixed bag ... it should mean higher
U.S. growth this year, but it also means higher foreign growth
this year and less risks abroad, and that tends to pull capital
out of the U.S. and be dollar negative,” said Anderson.
The Swiss franc CHF= was modestly weaker against the
greenback, after reaching a 16-month high earlier on Thursday.
It reached 0.961 overnight, its strongest level since Sept.
2018.
The United States on Monday added Switzerland to its watch
list of currency manipulators, which analysts say could
discourage the Swiss National Bank (SNB) from intervening to try
to limit further appreciation of the franc.
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Currency bid prices at 2:28PM (1928 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1132 $1.1149 -0.15% -0.69% +1.1172 +1.1129
Dollar/Yen JPY= 110.1400 109.8800 +0.24% +1.18% +110.1800 +109.8600
Euro/Yen EURJPY= 122.62 122.52 +0.08% +0.56% +122.8600 +122.5100
Dollar/Swiss CHF= 0.9648 0.9641 +0.07% -0.31% +0.9652 +0.9614
Sterling/Dollar GBP= 1.3063 1.3036 +0.21% -1.48% +1.3082 +1.3026
Dollar/Canadian CAD= 1.3049 1.3041 +0.06% +0.49% +1.3056 +1.3032
Australian/Doll AUD= 0.6892 0.6902 -0.14% -1.84% +0.6933 +0.6888
Euro/Swiss EURCHF= 1.0742 1.0748 -0.06% -1.00% +1.0759 +1.0734
Euro/Sterling EURGBP= 0.8520 0.8550 -0.35% +0.78% +0.8562 +0.8510
NZ NZD= 0.6629 0.6616 +0.20% -1.59% +0.6665 +0.6617
Dollar/Dollar
Dollar/Norway NOK= 8.8905 8.8610 +0.33% +1.28% +8.8936 +8.8470
Euro/Norway EURNOK= 9.8965 9.8794 +0.17% +0.60% +9.9116 +9.8710
Dollar/Sweden SEK= 9.4921 9.4616 +0.16% +1.55% +9.4978 +9.4528
Euro/Sweden EURSEK= 10.5685 10.5519 +0.16% +0.95% +10.5738 +10.5460