Daily Afternoon Report 09.02.2018

The U.S. dollar turned higher against other major currencies on Friday, after the U.S. Congress managed to pass a two-year budget agreement, ending a brief government shutdown.

The agreement will boost federal spending by almost $300 billion and suspend the debt ceiling for a year.

The euro was steady, with EURUSD at 1.2242, while GBPUSD declined 0.86% to 1.3793.

Earlier Friday, data showed that UK manufacturing production rose 0.3% in December, in line with expectations, while industrial production dropped 1.3%, disappointing expectations for a 0.9% fall.

A separate report showed that the UK trade deficit widened to £13.58 billion in December from a revised £12.46 the previous month, while analysts had expected the deficit to narrow to £11.50 billion.

Elsewhere, the yen and the Swiss franc were little changed, with USDJPY at 108.75 and with USDCHF at 0.9365.

The Australian dollar was almost unchanged, with AUDUSD at 0.7786, while NZDUSD added 0.15% to 0.7227.

The U.S dollar rose against its Canadian counterpart with USDCAD 1.2676 ahead of the release of monthly Canadian employment data earlier today around 13:30 GMT.