WASHINGTON (dpa-AFX) - The dollar is up against the Euro and the Japanese Yen Friday afternoon, but is down slightly against the British pound. A stronger than expected read on retail sales has provided a boost to the U.S. currency, as well as comments from a pair of top Fed officials.
Federal Reserve Chair Janet Yellen on Thursday downplayed the possibility the central bank might soon cut interest rates in a reversal of December's long-awaited tightening.
'I have not thought that a downturn sufficient to cause the next move to be a cut was a likely possibility,' Yellen told the Senate Finance Committee in her second day of Congressional testimony.
Important sectors of the U.S. economy will continue to withstand the global slowdown, New York Federal Reserve President William Dudley said Friday. Wall Street has been jittery this year amid fears that problems in Asia and Europe are washing ashore.
However, Dudley thinks low interest rates and a healthier banking system will prevent another U.S. recession, barring unforseen shocks.
Partly reflecting an increase in auto sales, the Commerce Department released a report on Friday showing that U.S. retail sales rose by slightly more than anticipated in the month of January. The Commerce Department said retail sales climbed by 0.2 percent in January compared to economist estimates for a 0.1 percent uptick.
Reflecting another steep drop in fuel prices, the Labor Department released a report on Friday showing a notable decrease in U.S. import prices in the month of January.
The report said import prices tumbled by 1.1 percent in January, matching the revised decreased reported for December. Economists had expected import prices to slump by 1.5 percent.
The Labor Department also said export prices slid by 0.8 percent in January after plunging by 1.1 percent in the previous month. Export prices had been expected to drop by 0.6 percent.
Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of February, according to a report released by the University of Michigan on Friday. The report said the preliminary reading on the consumer sentiment index for February came in at 90.7 compared to the final January reading of 92.0.
The decrease came as a surprise to economists, who had expected the consumer sentiment index to inch up to a reading of 92.5.
Reflecting increases in retail and manufacturing inventories, the Commerce Department released a report on Friday showing a modest uptick in U.S. business inventories in the month of December. The report said business inventories inched up by 0.1 percent in December after edging down by a revised 0.1 percent in November. The slight increase matched economist estimates.
The dollar has climbed to around $1.1250 this afternoon, from yesterday's 4-month low of $1.1375.
Eurozone industrial production dropped unexpectedly in December, data published by Eurostat showed Friday. Industrial output fell 1 percent on a monthly basis in December, faster than the revised 0.5 percent drop seen in November. Economists had forecast a 0.3 percent rise after falling by initially estimated 0.7 percent in November.
The euro area economy continued to expand on German growth but the pace of expansion remains weak as the global economy slows, raising expectations for additional easing from the European Central Bank as early as next month.
Gross domestic product climbed 0.3 percent sequentially in the fourth quarter of 2015, the same rate of growth as seen in the previous quarter, flash estimate from Eurostat showed Friday. The result was in line with expectations.
Germany's economy maintained growth momentum in the final three months of 2015, led by domestic demand, preliminary figures from Destatis showed Friday. Gross domestic product grew a seasonally and calendar-adjusted 0.3 percent from the third quarter, when it rose at the same pace. Growth was in line with economists' expectations.
Germany's consumer price inflation accelerated to an eight-month high in January as initially estimated, latest data from Destatis showed Friday. The consumer price index rose 0.5 percent year-over-year in January, in line with flash data, faster than the 0.3 percent increase in December.
The buck hit a low of $1.4569 against the pound sterling Friday, but has since rebounded to around $1.4515.
British construction output grew at a slower-than-expected pace in December, after falling in the previous month, figures from the Office for National Statistics revealed Friday. Construction output rose 1.5 percent month-over-month in December, reversing a 1.1 percent drop in November. The expected rate of increase was 2.0 percent.
The greenback has climbed to around Y113.360 against the Japanese Yen from Thursday's 15-month low of Y110.978.
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