Dollar is near 8-month peak

27.11.2015

On Friday, the dollar is moving around eight month highs against other major currencies amid growing expectations for a rate hike in December by Fed, while trade volumes are expected to remain weakened in holiday trading.

EUR/USD fell 0.17% to 1.0592, being traded near a seven-month low of Wednesday at 1.0564.

Dollar feels the support after optimistic US data published during the week reinforced expectations that the Federal Reserve will raise interest rates at its meeting in December.

Moreover, sentiment on the euro remained weakened after last Friday, ECB President, Mario Draghi, said the bank is ready for rapid actions to boost inflation in the Eurozone, and can also change the level of deposit rates in order to improve the effectiveness of quantitative easing.

USD/JPY pair is stable at 122.59.

Japanese data showed on Friday that household spending fell in October by 0.7% compared to expectations of an increase by 1.1% after falling 1.3% the previous month.

A separate report showed that Tokyo consumer price index rose in November by 0.2% in annual terms, which is in line with expectations.

The core CPI, which excludes food, remained unchanged this month, while there was expected a decline by 0.1%.

The dollar rose against the pound and the Swiss franc, with GBP/USD pair dropping 0.34% to 1.5052, and USD/CHF gaining 0.68% to 1.0307.

UK Office for National Statistics reported that gross domestic product grew in the third quarter by 0.5%, in line with expectations and preliminary estimations.

On an annual basis UK GDP expanded in the third quarter by 2.3%, similar to the preliminary figures and in line with forecasts.

The Australian and New Zealand dollars weakened; AUD/USD fell 0.26% to 0.7207, and NZD/USD pair went down 0.48% to 0.6540.

Meanwhile, USD/CAD pair rose 0.32% and is traded at 1.3334, near the two-month high reached on Monday at 1.3437.

The USD index, which tracks the US currency against a basket of six major rivals, rose 0.21% to 100.07, just below the Wednesday eight-month peak of 100.21.

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