Dollar Little Changed Heading Into The Weekend

Dollar Little Changed Heading Into The Weekend

The dollar is paring early gains against its major European rivals Friday afternoon and is recovering from early weakness against the Japanese Yen. The reversal has left the greenback little changed overall as the weekend draws near.

Personal income in the U.S. rose by slightly less than expected in the month of August, according to a report released by the Commerce Department on Friday, while personal spending increased in line with economist estimates.

The report said personal income climbed by 0.3 percent in August, matching the increase seen in July. Economists had expected income to rise by 0.4 percent.

Meanwhile, the Commerce Department said personal spending rose by 0.3 percent in August after climbing by 0.4 percent in the previous month. Spending had been expected to increase by 0.3 percent.

Reflecting moderations in both output and new orders growth as well as weaker hiring sentiment, MNI Indicators released a report on Friday showing a bigger than expected slowdown in the pace of growth in Chicago-area business activity in the month of September.

MNI Indicators said its Chicago business barometer fell to 60.4 in September from 63.6 in August, although a reading above 50 still indicates growth. Economists had expected the barometer to edge down to 62.5.

A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly less than initially estimated in the month of September. The report said the consumer sentiment index for September was downwardly revised to 100.1 from the preliminary reading of 100.8. Economists had expected the index to be unrevised.

The dollar climbed to a 2-week high of $1.1569 against the Euro Monday morning, but has since retreated to around $1.1615.

Eurozone inflation accelerated in September on food and energy prices, flash data from Eurostat showed Friday. Inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent a month ago.

German unemployment decreased notably in September, figures from the Federal Labor Agency revealed Friday. The number of unemployed declined 23,000 from the previous month to 2.3 million in September. Economists had forecast a moderate fall of 9,000. Unemployment had declined by 10,000 in August.

Germany's jobless rate remained unchanged in August, figures from Destatis revealed Friday. The unemployment rate came in at adjusted 3.4 percent, the same rate as seen in July.

France consumer price inflation slowed marginally in September, the provisional estimate from the statistical office Insee showed Friday. Inflation eased to 2.2 percent in September from 2.3 percent in August. The rate was expected to remain at 2.3 percent. Final data is due on October 11.

The buck rose to a 2-week high of $1.30 against the pound sterling Friday morning, but has since eased back to around $1.3040.

The UK economy expanded as initially estimated in the second quarter and the current account gap widened on visible trade deficit and primary income shortfall, data from the Office for National Statistics revealed Friday.

Gross domestic product grew 0.4 percent in the second quarter, unrevised from the previous estimate. The growth rate for the first quarter was revised down to 0.1 percent from 0.2 percent.

Due to higher visible trade deficit and primary income shortfall, the current account deficit widened by GBP 4.6 billion to GBP 20.3 billion in the second quarter. This was equivalent to 3.9 percent of GDP.

UK consumer confidence weakened in September amid heightened uncertainty surrounding Brexit, survey data from GfK showed Friday. The consumer sentiment index dropped to -9 in September from -7 in August. The expected score was -8.

The greenback slid to an early low of Y113.311 against the Japanese Yen Friday, but has since bounced back to a 9-month high of Y113.590.

The jobless rate in Japan came in at a seasonally adjusted 2.4 percent in August, the Ministry of Internal Affairs and Communications said on Friday, beneath expectations for 2.5 percent, which would have been unchanged from the previous month.

The value of retail sales in Japan was up a seasonally adjusted 0.9 percent on month in August, the Ministry of Economy, Trade and Industry said on Friday. That beat forecasts for an increase of 0.5 percent and was up from 0.1 percent in July.

Industrial production in Japan climbed a seasonally adjusted 0.7 percent on month in August, the Ministry of Internal Affairs and Communications said in Friday's preliminary reading. That was shy of forecasts for an increase of 1.4 percent following the 0.1 percent decline in July.

Japan's housing starts increased for the first time in three months in August, data from the Ministry of Land, Infrastructure, Transport and Tourism revealed Friday. Housing starts advanced 1.6 percent in August from last year, reversing a 0.7 percent drop in July. Orders were forecast to climb 0.4 percent.

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