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Dollar Under Pressure as EUR/USD Surges to 3-Week Highs

Dollar Under Pressure as EUR/USD Surges to 3-Week Highs

Dollar Under Pressure as EUR/USD Surges to 3-Week Highs
Forex
Tuesday, November 14, 2017 - 18:08

Investing.com – The dollar traded lower against a basket of currencies on Tuesday pressured by a surge in the euro to three-week highs following better-than expected economic growth data from Germany while upbeat US wholesale inflation data failed to stem losses in the greenback.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.60% to 93.83.

The dollar struggled to pare losses as upbeat wholesale inflation failed to offset negative sentiment on greenback amid a surge in both the euro and sterling.

The Labor Department said on Tuesday its producer price index for final demand increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.

The stronger wholesale inflation report comes ahead of consumer inflation data slated for Wednesday.

The euro rose 0.93% to $1.1776 against the dollar, a three-week high, after preliminary data showed that Germany, the Eurozone’s largest economy, grew 0.8% in third quarter of the year. That beat forecast of a 0.6% rise.

The sharp rise in German GDP spurred higher growth in broader Eurozone economy as initial estimates for third quarter economic growth showed the trading bloc grew at annualized rate of 2.5%.

Sterling, meanwhile, continued to trade higher against the greenback, despite a report showing both consumer and wholesale inflation for October undershot economist expectations.

GBP/USD rose 0.28% to $1.3154. The pair has traded in the low $1.30s for over a month, however, risks to the downside remained front and center amid rising political and Brexit-related uncertainties.

USD/CAD rose 0.02% to C$1.2737 while USD/JPY fell 0.18% to Y113.41.

© Reuters.
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