Dollar Recovering From Early Weakness

WASHINGTON (Alliance News) - The dollar got off to a weak start Friday, but has since recovered ...

Alliance News 14 September, 2018 | 8:16PM
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WASHINGTON (Alliance News) - The dollar got off to a weak start Friday, but has since recovered lost ground and turned positive. Traders are reacting to the rather large batch of US economic data that was released this morning.

Partly reflecting a drop in sales by motor vehicle and parts dealers, the Commerce Department released a report on Friday showing retail sales in the US increased by much less than expected in the month of August.

The Commerce Department said retail sales inched up by 0.1% in August after climbing by an upwardly revised 0.7% in July. Economists had expected retail sales to rise by 0.4% compared to the 0.5% increase originally reported for the previous month.

Import prices in the US fell by much more than expected in the month of August, according to a report released by the Labor Department on Friday.

The Labor Department said import prices dropped by 0.6% in August after edging down by a revised 0.1% in July.

Economists had expected import prices to dip by 0.2% compared to the unchanged reading originally reported for the previous month.

The report also said export prices slipped by 0.1% in August after falling by 0.5% in July. Export prices had been expected to come in unchanged.

A report released by the Federal Reserve on Friday showed US industrial production rose by slightly more than expected in the month of August. The Fed said industrial production climbed by 0.4% in August, matching the upwardly revised increase in July.

Economists had expected production to rise by 0.3% compared to the 0.1% uptick originally reported for the previous month.

Business inventories in the US increased in line with economist estimates in the month of July, the Commerce Department revealed in a report released on Friday. The Commerce Department said business inventories climbed by 0.6% in July after inching up by 0.1% in June.

Consumer sentiment in the US has improved by much more than anticipated in the month of September, according to a report released by the University of Michigan on Friday. The report said the consumer sentiment index jumped to 100.8 in September from 96.2 in August. Economists had expected the index to inch up to 96.6.

The dollar slid to an early low of USD1.1721 against the Euro Friday, but has since rebounded to around USD1.1630.

The euro area trade surplus declined to the lowest level in four years in July, figures from Eurostat showed Friday. The trade surplus fell to a seasonally adjusted EUR 12.76 billion from EUR 16.47 billion in June. This was the lowest since June 2014, when the surplus totaled EUR 12.22 billion.

Eurozone's hourly labor cost increased at a slightly faster pace in the second quarter, data from Eurostat showed Friday. Hourly labor cost advanced 2.2% from previous year following a 2.1% rise in the first quarter.

The buck fell to a low of USD1.3143 against the pound sterling Friday, but has since bounced back to around USD1.3065.

The greenback has risen to around Y112.015 against the Japanese Yen this afternoon, from an early low of Y111.753.

Japan's industrial production declined more than estimated in July, final data from the Ministry of Economy, Trade and Industry showed Friday. Industrial output fell 0.2% on month in July instead of 0.1% drop estimated initially.

Copyright RTT News/dpa-AFX

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