Forexpros – The U.S. dollar traded lower against its major counterparts Friday, following the release of disappointing U.S numbers, amid euro zone optimism of central bank intervention after Sunday’s Greek elections.
The single currency gained support on the session as investors became optimistic that central banks will move to add liquidity to downtrodden euro zone markets after Sunday’s critical Greek elections.
Dampening greenback sentiment in the U.S., UoM consumer sentiment fell more-than-expected last month, preliminary data showed on Friday.
In a report, the University of Michigan said that consumer sentiment fell to a seasonally adjusted 74.1, from 79.3 in the preceding month.
Analysts had expected UoM consumer sentiment to fall to 77.5 last month.
In additional USD negative news, industrial production fell unexpectedly last month, official data showed on Friday.
Meanwhile, U.S. TIC long term purchases rose less-than-expected last month, official data showed on Friday.
In a report, Department of the Treasury said that U.S. TIC long term purchases rose to a seasonally adjusted 25.6B, from 36.0B in the preceding month whose figure was revised down from 36.2B.
Analysts had expected U.S. TIC long term purchases to rise 45.3B last month.
In a report, the Federal Reserve said that industrial production fell to -0.1%, from 1.0% in the preceding month whose figure was revised down from 1.1%.
Analysts had expected industrial production to rise 0.1% last month.
The greenback was lower against the pound, with GBP/USD up 0.49% to hit 1.5639 Bank of England Governor Mervyn King stated that the bank may loosen monetary policy to support the economy.
The U.K.’s trade balance fell more-than-expected last month, official data showed on Friday.
In a report, National Statistics said that U.K. trade balance fell to a seasonally adjusted -10.1B, from -8.7B in the preceding month whose figure was revised down from -8.6B.
Analysts had expected U.K. trade balance to fall -8.5B last month.
On Thursday, The Swiss National Bank left its benchmark interest rate on hold following its policy meeting earlier and reiterated that it was prepared to buy foreign currency in “unlimited quantities” in order to defend the 1.20 minimum exchange rate imposed on the euro in September.
The greenback was also weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.1% to hit 1.0226,AUD/USD climbing 0.51% to hit 0.9983 and NZD/USD jumping 1.19% to hit 0.7814.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18%, to trade at 82.03.