Forexpros – Signs that the U.S. economy is strengthening led investors into riskier assets sending the dollar lower during European trade on Friday.
During mid session London trade, the greenback was down against the euro, with EUR/USD advancing 0.092% to hit 1.3028.
The single currency brushed off European Central Bank’s President’s statement that there is no “external savior ” for countries who refuse to reform and its bond buyback program is neither “eternal nor infinite”.
The greenback was also down against the pound, with GBP/USD gaining 0.084% to hit 1.5528.
The Fed stated that the U.S. economy has been expanding moderately, jobless claims have declined, and manufacturing is on the upswing; all painting a bullish picture for increasing risk appetites.
Greg Gibbs from the Royal Bank of Scotland told Bloomberg, “The U.S. economy has certainly been pretty stable for several months. Recent demand for the U.S. dollar may have been excessive.”
Meanwhile, the greenback was higher against the yen and lower against the Swiss franc with USD/JPY higher by 0.041% to hit 77.89 and USD/CHF giving back 0.64% to hit 0.9394.
The greenback was lower against its Canadian, Australian and New Zealand counterparts with USD/CAD falling 0.25% to hit 1.0325, AUD/USD gaining 0.56% to hit 0.9995 and NZD/USD soaring 1.21% to 0.7625.
Investors are awaiting U.S. consumer prices later in the trading session, a major inflation gauge.
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