Forexpros – The dollar rose against most major global currencies on Friday after U.S. consumer sentiment figures beat expectations.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists’ forecasts for a 72.4 reading.
In U.S. trading on Friday, EUR/USD was down 0.28% at 1.2321.
The consumer sentiment report fueled sentiments that despite headwinds from abroad and despite stubbornly high unemployment rates at home, the U.S. economy will continue to grow and put less pressure on the Federal Reserve to stimulate the economy, which would otherwise weaken the dollar.
The bullish consumer sentiment report came in the heels of surprisingly solid U.S. data released earlier this week.
U.S. industrial production outpaced expectations in July, climbing 0.6%, above forecasts for a 0.5% increase.
Retail sales in the U.S. jumped 0.8% in July after a 0.7% drop in June, shooting way past market expectations for a 0.3% increase.
Meanwhile in Europe, German Chancellor Merkel said European Central Bank President Mario Draghi’s comments last month that monetary authorities will do whatever it takes to save the euro were “completely in line” with European policy.
Markets took Draghi’s comments as a hint the ECB is poised to resume buying bonds of debt-ridden countries such as Spain and Italy to lower borrowing costs there.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.28% at 1.5689.
The dollar was up against the yen, with USD/JPY trading up 0.24% at 79.53, and up against the Swiss franc, with USD/CHF trading up 0.28% at 0.9748.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.23% at 0.9889, AUD/USD down 0.85% at 1.0421 and NZD/USD down 0.43% at 0.8069.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% at 82.66.
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