The dollar declined further against the Euro on Friday after the release of some disappointing economic data. Industrial production came in below expectations today and CPI was just below expectations. Consumer sentiment surprised everyone, coming in with a decrease in March. Talk amongst the markets speculated that this was perhaps due to the higher cost of gasoline.
The greenback extended yesterday's losses versus the Euro on Friday, pulling back from a one-month high of $1.3010. The dollar has hit a 3-session low of $1.3186.
Eurozone merchandise trade balance slipped into a deficit in January despite an acceleration in exports, according to data released Friday by Eurostat. The trade balance showed a deficit of EUR 7.6 billion in January, compared to a revised surplus of EUR 9.1 billion in December. Economists were looking for a deficit of EUR3 billion in January.
The buck also weakened further versus the pound sterling Friday. The dollar reached $1.5860, its lowest level since March 6th.
The dollar held steady against the Japanese Yen on Friday, right around Y83.30.
The U.S. Labor Department reported Friday that its consumer price index rose by 0.4 percent in February following a 0.2 percent increase in January. Economists had expected the index to increase by about 0.5 percent. Excluding food and energy prices, the core consumer price index edged up by 0.1 percent in February compared to a 0.2 percent increase in the previous month.
Industrial production in the U.S. unexpectedly came in unchanged in the month of February, according to a report released by the Federal Reserve on Friday. Industrial production rose by a revised 0.4 percent in January. Economist had expected production to increase by 0.5 percent. Mining output showed a notable decrease during the month, tumbling by 1.2 percent in February following a 1.6 percent drop in the previous month.
Consumer sentiment in the U.S. showed an unexpected decrease in the month of March, according to a report released by Reuters and the University of Michigan on Friday. The consumer sentiment index fell to 74.3 in March, from 75.3 in February. The drop surprised economists, who had expected the index to increase to 76.0.
by RTT Staff Writer
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