Forexpros – The U.S. dollar traded lower against its major counterparts Friday, as European Union ministers agreed to increase the debt firewall increasing risk appetite.
During U.S. afternoon trade, the dollar was lower against the euro, with EUR/USD climbing 0.22% to hit 1.3332.
Official data indicated U.S. consumer spending grew by 0.8% in February, beating the median estimate of 0.6% fuelling the risky asset buying.
Euro zone leaders agreed to increase the debt firewall increasing the appeal of the risk on trade.
However the a cap was placed on the rescue funds at EUR500 billion after a German led coalition opposed further expansion of the debt firewall dampening the risk on enthusiasm.
The debt firewall was expected to be EUR800 billion, leading to speculation that the agreed amount falls short of the needed amount to stem the crisis.
In Spanish news, Prime Minister Mariano Rajoy will announce the most austere budget since before the nation’s return to democracy in 1978.
Spain risks a deeper recession in an attempt to avoid suffering from the regions debt crisis
The greenback was slightly lower against the pound, with GBP/USD trading higher 0.20% to hit 1.5990.
On Thursday, the Bank of England stated that U.K. mortgage approvals fell to their lowest level in more than eight months in February, falling to 48,986 down from 57,899 the previous month.
A separate report showed that U.K. house prices posted the largest monthly decline in more than two years this month.
The greenback was lower against the yen and against the Swiss franc, with USD/JPY falling 0.07% to hit 82.41 and USD/CHF falling 0.35% to hit 0.9081.
Elsewhere, the greenback gained ground against its Canadian and Australian but traded lower againt New Zealand counterparts, with USD/CAD climbing 0.19% to hit 0.9984, AUD/USD shedding 0.16% to hit 1.0367 and NZD/USD up 0.32% to hit 0.8200.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded lower 0.20% to hit 79.13.
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