The dollar is turning in a mixed performance Friday afternoon, rising against the Euro and the Japanese Yen, but losing ground against the British pound. Economic news was on the light side this morning, but the news was better than expected. Traders are also looking forward to a speech by Federal Reserve Chair Janet Yellen this evening.
After reporting U.S. existing home sales at their lowest level in a year in the previous month, the National Association of Realtors released a report on Friday showing an unexpected rebound in existing home sales in the month of September.
NAR said existing home sales climbed by 0.7 percent to an annual rate of 5.39 million in September from a rate of 5.35 million in August. Economists had expected existing home sales to see further downside and drop to a rate of 5.30 million.
The dollar has climbed to around $1.1780 against the Euro Friday afternoon, from an early low of $1.1857.
The euro area current account surplus rose to the highest level in more than a year in August, the European Central Bank said Friday. The current account surplus rose to EUR 33.3 billion in August from EUR 31.5 billion in July. This was the highest since May 2016.
Germany’s producer prices increased at the fastest pace in five months in September, data from Destatis showed Friday.
Producer price inflation rose more-than-expected to 3.1 percent in September from 2.6 percent in August. This was the fastest increase since April, when prices advanced 3.4 percent. Economists had forecast a 2.9 percent rise for September.
The buck has dropped to around $1.32 against the pound sterling Friday afternoon, from an early high of $1.3087.
The UK budget posted the smallest budget deficit in a decade for the month of September, suggesting that the borrowing is on the course to undershoot the full-year target. Public sector net borrowing, excluding banks, decreased by GBP 0.7 billion from the previous year to GBP 5.9 billion in September, the Office for National Statistics said Friday.
This was the lowest September net borrowing since 2007 and also below the expected level of GBP 6.5 billion.
The greenback has broken out to over a 3-month high of Y113.525 against the Japanese Yen this afternoon, from an early low of Y112.602.
The material has been provided by InstaForex Company – www.instaforex.com