Forex — Dollar Pares losses after Strong UoM-report

© Reuters. Dollar off session lows, but remains under pressure — The US dollar reduced losses against other major colleagues on Friday, supported by strong U.S. consumer sentiment data, although a disappointing report on the U.S. inflation published weighed earlier in the day.

The dollar some strength, according to the University of Michigan said in a preliminary report that the consumer sentiment index climbed to the highest level since 2004 this month.

The data came after the U.S. Commerce Department said that retail sales recorded the largest increase of the two-and-a-half years in September.

However, a separate report showed that US consumer prices rose less than expected in September, both on a monthly and annual basis.

Some fear that a lower-than-expected rise in US inflation could prevent the Federal Reserve from raising interest rates in December.

Fed Governor Lael Brainard said on Thursday that the Central Bank could be implemented the timetable for interest rate increases, it is better to wait if the Fed were, until inflation rises above his opponent.

Separately, St. Louis Fed President James Bullard said the U.S. Central Bank needs to increase mount a clear defense of his 2% inflation target and keep interest rates to the pace of the price increasingly rises.

EUR/USD was 0.16% at 1.1850, not far from Thursday’s two-week high of 1.1880, while GBP/USD advanced 0.36% to trade at a fresh two-week high of 1.3309.

The pound remained supported by a report released on Thursday by the German newspaper «Handelsblatt», indicating that England was able to remain in the European Union for a further two years.

According to the report, the offer of the EU, the United Kingdom, the fulfillment of its obligations as a member state is bound, but his voting to give up rights.

Meanwhile, the euro was supported also said, according to the President of the European Central Bank, Mario Draghi, in a speech on Thursday that interest rates would remain at the current level «behind» the time that the Central Bank considers the acquisition of the assets.

Elsewhere, USD/JPY 0.35% slumped 111.90, while USD/CHF shed 0.21% to 0.9734.

The Aussie was little changed, with AUD/USD at 0.7889, while the NZD/USD climbed 0.88% to trade 0.7189.

Official data showed earlier that China’s imports increased 18.7% in the last month, while exports were up by 8.1%.

China is Australia’s largest export partner and new Zealand is the second-largest export partner.

The Canadian dollar held steady, with USD/CAD at 1.2482.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% and 92.77 to 10:45 a.m. ET (14:45 GMT), only from a more than two-week low of 92.59 hit earlier in the session.

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