The dollar fell against the euro and yen on Friday as investors exited risky trades, unnerved by U.S. President Barack Obama's proposals to limit risk-taking by U.S. banks.
Euro has traded biddish tone to start Friday as pre-weekend short-covering has lifted price from Asia low of 1.4065. The single currency picked up more upward momentum after eurozone released its industrial production. Eurozone industrial new orders rose by 1.6% in November, much higher than economists' forecast of 0.5% increase n the upwardly revised 1.9% decrease in October. Euro reached intra-day high of 1.4182 in NY afternoon before retreat.
Versus the yen, the greenback had a very hectic and choppy session in Australia & Tokyo morning. Despite falling to 89.78 in early Asia due to eur/jpy's selloff to 126.55, dollar rebounded from there to 90.57 in European morning on active bargain hunting by Japanese lifers and mega-banks. However, weakness in European & U.S. stocks markets (DJI closed down 217pts) triggered another fall and price fell to around 90.80 in NY afternoon. The pair ended the day down over 0.5% and posted the third straight weekly decline.
Despite rising to 1.6285 in European morning, cable tumbled from there and the decline accelerated after the U.K.’s retail sales grew than expected in December. U.K's December retail sales rose 0.3 % from November, below the 1.1% gain forecast by economists. Price eventually reached intra-day low of 1.6077 in NY mid-session before recovery.
Data to be released next week include Australia PPI, Germany Gfk index, U.S. existing home sales on Monday, Japan BOJ rate decision, Germany Ifo index, EU current account, U.K. GDP, U.S. consumer confidence on Tuesday, Australia Westpac leading economic index, Japan trade balance, Australia CPI, Japan BOJ report, U.K. CBI distribution trade, U.S. new home sales, U.S. Fed rate decision on Wednesday, New Zealand RBNZ rate decision, Japan retail sales, Germany unemployment rate, U.S. durable goods, jobless claims on Thursday, New Zealand trade balance, Japan manufacturing PMI, National CPI, unemployment rate, household spending, industrial production, housing starts, construction orders, U.K. Gfk survey, EU HICP flash, Unemployment rate, Swiss KOF indicator, U.S. building permits, PCE core, GDP, Chicago PMI, U. Michigan survey, Canada GDP, PPI on Friday.