FOREX-Dollar dips as robust U.S. GDP data fail to impress

collected by :John Locas

The greenback gave up initial gains after the U.S. government reported gross domestic product grew at a 4.1 percent annualized pace in the second quarter, matching the median forecast among economists polled by Reuters. The GDP, while strong on an annualized basis, was less impressive on a year-over-year basis, coming in at 2.8 percent. The euro was up 0.07 percent at $1.16510, while the greenback was down 0.2 percent at 110.99 yen, according to EBS. That came after the euro rallied on relief about the United States and the European Union agreeing to begin talks to lower tariffs. The yuan has been under sustained pressure since Trump threatened to impose tariffs on all imports from China.

FOREX-Dollar falls as U.S. tariffs kick in; U.S. jobs data eyed

ADVERTISEMENT"The first batch of tariffs is a milestone in the trade war but a very well-telegraphed one. That helped the euro rise to $1.1727, its strongest since June 26. The Australian dollar, a liquid proxy to China-related trades, edged up 0.1 percent to $0.7405, suggesting the region's markets were greeting the tariffs calmly. Against the safe-haven yen, the dollar inched down 0.1 percent to 110.560 yen and the Chinese yuan remained weaker against the dollar. ADVERTISEMENTInvestors wanted to know whether the tariffs were a continuation of tit-for-tat measures or an escalation between the two countries.

FOREX-Dollar strengthens before U.S. GDP data

As it stated in Traders are braced for a potentially strong reading of U.S. gross domestic product (GDP) data, set for release later on Friday. But analysts at ING said the dollar could fall after the release because the GDP figures had been inflated by tariff-related trade activity and high inventories instead of economic fundamentals. The yuan on Friday fell to a 13-month low, shedding half a percent to breach the key 6.8 per dollar level. Uncertainty before the Bank of Japan's two-day policy meeting beginning on Monday capped the dollar versus the yen. The U.S. currency was 0.1 percent lower at 111.135 yen , unable to hold gains after rising briefly to 111.25.