Dollar Climbed Against Its Rivals Friday

The dollar climbed against its rivals Friday as data showing ongoing strength in the U.S. services sector offset a continued slowing in manufacturing to a three-year low.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.18% to 97.87.

The IHS Markit flash purchasing managers index for manufacturing slipped to a three-month low in January, but the services PMI rose to the highest level since last March.

The strength in the greenback was also supported by a plunge in the pound and euro.

GBP/USD fell 0.29% to $1.308 and more losses could follow when trade negotiations between the U.K. and the EU begin after the U.K. leaves the trading bloc on Jan. 31, said Jane Foley, a senior foreign-exchange strategist at Rabobank.

"Once those negotiations get underway in February and March, some of us could be in for a rude awakening," Foley added.

EUR/USD fell 0.20% to $.1013 shrugging off better-than-expected PMIs from Germany amid expectations that the European Central Bank is set to persist with negative rates at least until the end of the year.

USD/JPY fell 0.21% to $109.26 as the yen was supported by an uptick in safe-demand after the CDC confirmed that a second case of the coronavirus had been identified in the U.S.

USD/CAD rose 0.18% to C$1.315 as oil prices continued to retreat on fears that a continued spread of the virus could dent air travel, keeping a lid on oil demand.

 

Source: Investing.com

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