Yahoo Finance Dollar Rally Fades on Softer Philly Fed, Strong Sterling
Investing.com – The U.S. dollar gave up its early gains against its rivals following weaker Philadelphia Fed data and a rebound in sterling after the Bank of England's hawkish pivot.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.25% to 94.54 from a session high of 95.22.
The Philadelphia Fed said Thursday its manufacturing index for June fell to a reading of 19.9, from 28.9 last month, missing economists' estimates for a reading of 28.9.
That overshadowed positive data on the labor market front, as initial jobless claims dropped by 3,000 to a seasonally adjusted 218,000 for the week ended June 16, beating economists’ forecast for a rise to 220,000.
A firmer yen and rebound in sterling also sparked a reversal in the greenback.
GBP/USD rose 0.61% to $1.3253, bouncing from a low of $1.3102 after the Bank of England stood pat on interest rates but an uptick in the number of policymakers calling for a rate increase, suggested the door was open for a hike later this year.
USD/JPY fell 0.28% to Y110.06 amid risk-off sentiment following renewed focus on trade tensions between the U.S. and China.
The yen is often sought in times of geopolitical tension or market turbulence as Japan – boasting a large current account surplus – serves as a safe-haven proxy.
EUR/USD rose 0.27% to $1.160, shrugging off concerns about Italian's future in the Eurozone, following the Italian government's decision to appoint a few Eurosceptic members.
USD/CAD climbed 0.05% as the oil-sensitive loonie came under pressure amid a retreat in oil prices.
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