Dollar was up on the eve of the release of US economic data

13.05.2016

On Friday, the dollar rose against major currencies, as investors awaited the release of economic reports in the US today, while the pessimistic data of the Eurozone brought down demand for the single currency.

EUR/USD fell 0.22% to 1.1350.

The euro fell after official data showed that the Eurozone's gross domestic product rose a seasonally adjusted 0.5% compared with the previous quarter, and 0.3% more than in the fourth quarter of 2015. According to the first estimate published on April 29, GDP growth was 0.6%.

In annual terms, the Eurozone’s GDP increased by 1.5% in the first quarter of this year, lower than in the fourth quarter of 2015 and the initial estimates of growth by 1.6%.

The USD/JPY pair fell 0.29% to 108.71.

The yen rebounded after the Monday comments of Japan's Finance Minister, Taro Aso, that Tokyo is ready to intervene in the currency market if excessive dynamics of the yen will have a negative impact on the economy.

But the growth is limited, because on Friday the head of the Bank of Japan, Haruhiko Kuroda, said that the central bank will "decisively" act in order to achieve the inflation target of just below 2%, noting that there are still "enough" options to stimulate economic growth.

The US dollar is stable against the pound – GBP/USD was down 0.25% to 1.4413, and is steady against the Swiss franc – USD/CHF was traded at 0.9704.

The Australian and New Zealand dollars showed a decrease: AUD/USD pair fell 0.53% to 0.7286 and NZD/USD fell 0.32% to 0.6798.

Earlier on Friday, the statistics in New Zealand reported that retail sales rose in the first quarter by 0.8%, less than the expected increase of 1.0%, after rising 1.2% in the three months to December.

Retail sales excluding automobiles and gas stations rose 1.0% in the last quarter, below forecasts of an increase of 1.1%, after rising in the fourth quarter of 2015 by 1.3%.

USD/CAD rose 0.13% to 1.2860.

The USD Index, which tracks the greenback against a trade-weighted basket of six major currencies, was up 0.17% to 94.27.

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