US dollar has plunged to fresh bottom vs the majors over 4 months on Friday. The currency weakening is related to slack economic data posted yesterday. Moreover, investors await US inflation and retail sales data.
The American currency felt pressure from the report by US Labor Department. In particular, the data showed an unexpected increase in the number of people that claimed for unemployment benefits to 261,000, against anticipated decrease to 246,000.
Another driver was the December production price index that dropped 0.1% (forecast – 0.2%).
By now the US dollar index has dipped 0.55% to 91.16.
The euro and sterling rebounded against the US dollar: EUR-USD gained 0.77% to 1.2125 and GPB-USD – 0.54% to 1.3611.
Australian dollar reportedly decreased by 0.18% to 0.7878, while the NZD-USD pair was stable at 0.7257.
JPY and CHF posted gains vs USD: USD-JPY lost 0.15% falling to 111.11 and USD-CHF – 0.47% to 0.9712.
As for USD-CAD, the pair changed just slightly staying at 1.2519.