Daily Afternoon Report 14/08/2015
The dollar was little changed against the other major currencies today, after data showed that U.S. producer prices rose more than expected last month, as investors awaited an upcoming report on U.S. consumer sentiment.
Official data showed on Friday that U.S. producer prices rose 0.2% in July, beating expectations for an uptick of 0.1%, after a 0.4% gain the previous month. The report came a day after data showed that U.S. jobless claims rose more than expected last week, but held near the lowest level since November 1973, while U.S. retail sales increased more than expected last month.
In the euro zone, data on Friday showed that gross domestic product rose 0.3% in the second quarter, confounding expectations for a growth rate of 0.4%. Year-on-year, the euro zone economy grew by a rate of 1.2% in the three months to June, compared to expectations for 1.3%. A separate report showed that the bloc’s consumer price index fell 0.6% in July, in line with expectations and after a flat reading the previous month.
Elsewhere, Statistics New Zealand earlier reported that retail sales ticked up 0.2% in the second quarter, below expectations for a 0.5% gain, while core retail sales, which exclude automobiles and gas stations rose 0.1%, compared to expectations for an increase of 0.7%.
The greenback was higher against the Canadian dollar, with USD/CAD up 0.13% at 1.3076 after data showed that Canada’s manufacturing sales rose 1.2% in June, disappointing expectations for a 2.1% gain. Manufacturing sales ticked up 0.2% in May, whose figure was revised from a previously estimated 0.1% rise. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.35.