Forex - Dollar On-Track to Snap 4-Week Winning Streak as EUR/USD Gains ~ Financial Times

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Friday, May 11, 2018

Forex - Dollar On-Track to Snap 4-Week Winning Streak as EUR/USD Gains

© Reuters.  © Reuters.
Investing.com – The dollar fell against its rivals on Friday as traders appeared to take profit on its recent rally, while gains in the euro limited upside momentum.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.26% to 92.33.
Upbeat economic data did little to support sentiment on the dollar, which remained on track to post its first weekly slump in four weeks despite hitting a year-to-date high of 93.26 on Wednesday.
Michigan’s preliminary consumer expectations rose to a reading of 89.5 for May, while consumer sentiment is rose to a reading of 98.8, beating economists’ forecasts.
Some analysts warned earlier this week the run-up in the dollar would come under pressure as there was limited room for further update.
ING said it remained convinced that by the end of the year - and into 2019 – “structural forces” would drive the dollar to levels weaker than where it currently trades.
The divergence between US growth and interest rates compared to the rest of the world – one of the reasons for the recent dollar rally – was nearing its peak, the bank warned.
GBP/USD rose 0.18% to $1.3544 as it continued pare some of its losses, which had followed the Bank of England’s dovish remarks on Thursday.
EUR/USD added 0.30% to $1.1952, while USD/JPY 0.12% to Y109.26.
USD/CAD fell 0.10% as weaker Canadian labor market and falling oil prices, supported the pair.

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