USD continued to trade steady to lower as BOJ comments weigh on the Yen

The USD continued to trade steady to lower against the other major currencies on Friday, amid data indicating that inflation in the Eurozone increased more than analysts’ forecasts for this month, which continued to support the Euro, and as the comments of the Bank of Japan continued to weigh on the Yen.

During U.S. morning trading hours, the Euro was stable against the USD with EUR/USD adding 0.04% at 1.3610.

A report released today indicated that the unemployment rate decreased to 12.1% last month, from 12.2% in September.

Preliminary data indicated that the annual rate of inflation in the Eurozone increased to 0.9% in November, higher than market expectations for an increase to 0.8%.

A second report showed that German retail sales dropped 0.8% last month, in contrast to expectations for an increase of 0.5%.

The USD was also steady against the British Pound, with GBP/USD losing 0.04% at 1.6338.

Data released today showed that U.K. net lending to individuals increased by GBP1.7 billion in October, in comparison to expectations for a GBP2.1 billion increase.

The USD was almost unchanged against the Japanese Yen, with USD/JPY edging up 0.02% at 102.33, and lower against the Swiss Franc with USD/CHF dropping 0.21% at 0.9037.

Official data from Japan showed that household spending increased at an annualized rate of 0.9% in October, in line with market expectations.

A second report indicated that Tokyo’s core consumer inflation, increased at an annualized rate of 0.6% this month, high above expectations for a 0.4% increase.

Also in Japan, preliminary government data indicated that industrial production in Japan increased 0.5% last month, well below expectations for a 2% increase.

The USD traded steady to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.01% at 1.0580, AUD/USD increasing 0.17% at 0.9118 and NZD/USD rising 0.46% at 0.8155.

The USD index was down 0.12% at 80.54.


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