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The greenback lost ground on Friday after closing above two week highs in the previous session, the Dollar fell after the release of disappointing economic data. Downbeat data weighed on trader’s sentiment as the figures didn’t support Fed Chair Yellen’s hawkish tone in the press conference after the Federal Reserve decided to rise interest for second time this year.
U.S Economic data showed the building in the states has slow as of late, the release of Building permits for the month of May dropped to 1.168 million permits compared to previous reading of 1.228 million and below markets expectation of an increase 1.250 million.
Also weighing on sentiment, was a report from the University of Michigan that showed a drop in its consumer sentiment gauge to 94.5 in June contrary to analyst expectations of a rise to 97.1.
The highlight of the week was the Fed’s decision to raise interest rates for the second time this year, and most notably Fed chair Yellen’s Hawkish remarks that a steady increase in rate is appropriate. Yellen also emphasized that economy will continue to grow at a moderate pace in the predictable future.
The US Dollar Index, which measures the strength of the US Dollar against a basket of major currencies, dropped on Friday after settling at its two week high in the previous session. The greenback fell by 0.34 percent to trade at 97.18 at the close.
Over in Europe, the rose after falling to its two-week low in the previous session. The currency rose amid weakening in the greenback after the release of downbeat U.S economic data, the euro also found support after the IMF along with euro’s 19 finance ministers backed the payout of 8.5 billion euros to Greece as the country is on the brink of defaulting. The decision to lend Greece the amount by the ministers and the IMF was done with main propose of avoiding another debt crisis.
The Euro rose by 0.47 percent versus the dollar for the pair to end session at 1.1197.
In the United Kingdom, the sterling pound continued to rise amid unexpected vote for a hike in rate by three member in the Bank of England’s Monetary Policy Committee. The GBP/USD rose by 0.16 percent settle at 1.2778 at the close.
Elsewhere in Japan, the Japanese Yen was left almost unchanged despite a weakening in the greenback, the Yen was pressured by the dovish tone of Bank of Japans suggesting that Japans loose monetary policy will remain unchanged for a while. The BOJ Decided to leave interest rate unchanged.
The pair edged lower at 110.87 after Friday’s trading session down from 110.92
Over in Canada, the loonie Dollar gained some lost ground against its US counterpart, amid rise in Oil prices on Friday after oil hit 5-week lows in the previous session, as the US Dollar denominated currency ended the session at 1.3209 down from 1.3269.
Commodity currencies, the Australian and the New Zealand Dollars both grained against their US counterpart with the Australian Dollar ending at 0.7618 up from 0.7578 and the New Zealand Dollar settling at 0.7249 and up from 0.7205.
The New Zealand’s Gross Domestic Product came out below its expectations at 0.5% and 2.5% on both quarterly and yearly basis respectively.
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