Dollar Snaps 3-Day Losing Streak on Firmer U.S. Import Data

Dollar Snaps 3-Day Losing Streak on Firmer U.S. Import Data

Oct 12, 2018

The dollar found its footing against its rivals Friday on firmer U.S. import data and weakness in the euro and sterling.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.29% to 94.96.

The cost of goods imported into the U.S., as measured by the import price index, rose 0.5% last month, exceeding economists' forecasts for a 0.2% increased. That was the first increase in four months, driven by a rise in energy prices.

The rise in greenback, however, appeared too little too late as it remained on track for a weekly loss after ceding ground against sterling and the euro.

GBP/USD fell 0.60% to $1.3154, while EUR/USD fell 0.234% to $1.1553, But both pairs remained on track for a weekly gain amid rising investor hopes that the U.K. and European Union will reach an agreement on a Brexit deal as soon as next week.

A rebound in global markets, meanwhile, failed to tempt traders to abandon their safe-haven holdings of yen, as analysts warned Friday's bounce in global markets may turn out to be nothing more than a relief rally.

USD/JPY fell 0.11% to Y112.04 and remained on track for the biggest weekly loss since February.

USD/CAD rose 0.06% to C$1.3041 as oil prices were set for a timid end to the week following a steep decline on Thursday.

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