Dollar on the other hand, as caution dominated ahead of the weekend
Investing.com — The dollar remained broadly lower against the other major currencies on Friday, as tensions between the US and North Korea dominated the market sentiment and as investors were unwilling to take risks ahead of the weekend.
Had the dollar strengthened broadly after the Federal Reserve indicated on Wednesday that a further interest rate increase is likely this year and said it will begin to relax $4.5 trillion balance sheet in October.
But the market sentiment was hit after the North Korean leader, Kim Jong-Un, said on Friday that Pyongyang about the «highest level of hard-line action in history» against the United States in response to President Donald Trump’s threat to destroy the country.
Shortly after North Korea’s foreign Minister Ri Yong Ho said his country could fuel the implementation of a water-bomb test in the Pacific ocean of an unprecedented scale.
In his first speech before the General Assembly of the United Nations on Tuesday, Trump said: «the United States has great strength and patience, but to defend if it is forced themselves and their allies, we have no choice, but to destroy completely, North Korea.»
The safe-haven yen and Swiss franc remained higher, with USD/JPY sliding 0.52% 111.87, from the previous session, the two-month-high of 112.72, while USD/CHF fell from 0.25% in trade 0.9682.
Elsewhere, GBP/USD up 0.30% to trade at 1.1978, while GBP/USD was down 0.35% at 1.3536, after you beat once again in the short session lows 1.3491.
The euro was reinforced by the data earlier published Friday by the research group Markit, the manufacturing and the service sector activity in the euro-zone advanced more than expected this month.
Meanwhile, the pound came under pressure, while a highly-anticated speech by UK Prime Minister Theresa May on the Brexit process.
Speaking in Florence, Italy, may, said the British «never fully at home felt in the European Union», but the Brexit «does not mean that we are, we turn back to «Europe,» and that she hopes for a «creative and practical» separation.
You can continue to say that the EU and the UK have a common commitment to free trade, however, add that the future of their country’s partnership with the EU can not move, such as the European economic area where goods, services and people – can be study alone on the trade, as the Eastern bloc has with Canada.
The Prime Minister also noted that the UK would pay budget remains in the EU by 2020.
The Australian and new Zealand dollars were stronger, with AUD/USD up 0.66% at 0.7983 and with NZD/USD advancing 0.47% to 0.7341.
Meanwhile, USD/CAD 0.38% broke to 1.2282.
In Canada, data on Friday showed that inflation rose less than expected in the last month of just 0.1%, while core inflation remained unchanged.
A separate report showed that retail sales showed a higher-than-expected rise in August, but the core of the reading was weaker than forecasts.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 91.73 to 10:50 a.m. ET (14:50 GMT), Thursday, a week with highs of 92.42.