The dollar is currently turning in a mixed performance as the trading week draws to a close. The U.S. currency is up against the Japanese Yen and is attempting to bounce back from its early weakness against both the Euro and the pound sterling.
Investor sentiment continues to run high Friday on continued hopes for a solution to the Greek debt crisis. The continued recover of the Chinese stock market after Wednesday’s sharp drop is also adding to the positive mood.
Wholesale inventories in the U.S. increased by much more than expected in the month of May, according to a report released by the Commerce Department on Friday. The report said wholesale inventories increased by 0.8 percent in May after rising by 0.4 percent in April. Economists had expected inventories to rise by 0.3 percent.
The dollar dropped to a week and a half low of $1.1216 against the Euro Friday, but has since rebounded to around $1.1130.
Germany wholesale prices continued to decline in June, figures from Destatis showed Friday. Wholesale prices dropped 0.5 percent year-on-year in June, slightly faster than May’s 0.4 percent fall. The wholesale price index has been falling since July 2013.
French industrial output recovered as expected in May, the statistical office Insee reported Friday. Industrial output grew 0.4 percent month-on-month in May, reversing a 0.8 percent fall in April. This was the fastest growth in three months. The monthly rate matched economists’ expectations.
Greek Prime Minister Alexis Tsipras submitted a cash-for-reforms proposal to creditors on Thursday that includes spending cuts, pension reforms and tax hikes in exchange for a 53.5 billion euro three-year bailout, a third for the country, acceptance of which will pave the way for further negotiations between both sides.
The Greek Parliament is set to discuss the proposal Friday evening and the vote outcome is expected early Saturday.
Eurozone finance ministers are scheduled meet on Saturday at 3 pm local time in Brussels to review the Greek request.
The buck fell to a 3-session low of $1.5550 against the pound sterling early Friday, but has since bounced back to around $1.5490.
Britain’s trade deficit in goods in May was the smallest in nearly two years as imports declined and exports remained unchanged, data from the Office for National Statistics showed Friday. The visible trade deficit for May was GBP 8 billion, which was the smallest shortfall since June 2013. It was also smaller than the GBP 9.7 billion deficit predicted by economists.
U.K. construction output declined for the second straight month in May, defying economists’ expectations for an increase, data from the Office for National Statistics showed Friday. Construction output fell 1.3 percent month-over-month in May, faster than previous month’s 0.5 percent drop. Economists had expected a 0.8 percent climb for the month.
The greenback has surged to a 3-day high of Y122.840 against the Japanese Yen Friday, from Wednesday’s low of around Y120.400.
Japan’s consumer morale improved as expected in June, after falling slightly in the prior month, survey figures from Cabinet Office showed Friday. The consumer confidence index rose to 41.7 in June, in line with expectations, from 41.3 in May. in April, the score was 41.5.
An index monitoring corporate service prices in Japan was down 0.2 percent on month in June, the Bank of Korea said on Friday. That missed forecasts for an increase or 0.1 percent following the downwardly revised 0.2 percent increase in May.
The material has been provided by InstaForex Company – www.instaforex.com