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Dollar on Track for Weekly Gain on Upbeat U.S. Data, Sterling Slump

2018-11-16 10:41:22Basics of Trading
Dollar on Track for Weekly Gain on Upbeat U.S. Data, Sterling Slump

The dollar rose against its rivals Thursday as mostly bullish economic data reaffirmed investor expectations that the U.S. economy remains on solid footing, while a slump in the pound also lifted sentiment.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.26% to 96.91.

A deluge of economic data including retail sales that topped economist estimates paved the way for the greenback to add to gains, keeping it on track to record a fifth-straight weekly gain.

The Commerce Department said on Thursday that core retail sales rose 0.7% last month, above economists’ forecast for a 0.5% rise, signaling ongoing strength in consumer spending.

The U.S. Department of Labor, meanwhile, reported Thursday that initial jobless claims rose by 2,000 to a seasonally adjusted 216,000 for the week ended Nov. 10, in line with economists’ forecasts.

Manufacturing data was mixed, however, as the Philadelphia Fed said Thursday its manufacturing index fell to a reading of 12.9 in November, from 21.1 last month. While the Empire State manufacturing index rose 2.3 points in November to a reading of 23.3, the New York Federal Reserve said.

Sterling's biggest slump of the year so far, underpinned the greenback, following fresh concerns over the progress of the Brexit deal after a slew of ministers resigned from UK Prime Minister Theresa May's government, citing opposition to the deal.

In the midst of the resignations, the Prime Minister struck defiant tone, vowing to fight for her draft Brexit deal.

GBP/USD fell 1.79% to $1.2758, while EUR/USD rose 0.16% to $1.1329.

USD/JPY rose 0.01% to Y113.64 as safe-haven demand weakened the yen following a rebound on Wall Street.

USD/CAD, meanwhile, fell 0.483% to C$1.3177 as oil prices continued to rebound supported the oil-price-sensitive loonie.