Euro mixed as single-currency region returns to growth in third quarter
By Lisa Twaronite, MarketWatch
LONDON (MarketWatch) -- The dollar mostly lost ground Friday, with strategists attributing the modest weakness to market participants taking profits on the greenback's recent bounce.
The dollar index (DXY 75.44, -0.16, -0.21%) , a measure of the U.S. unit against a trade-weighted basket of rival currencies, was down 0.2% to stand at 75.439.
The euro was mixed, edging up on the dollar but retreating against the Japanese yen and the British pound as foreign-exchange traders reacted to data on euro-zone economic growth.
The third-quarter data confirmed the 16-nation region that shares the single currency returned to growth after five consecutive quarters of contraction. Read about euro-zone third-quarter GDP.
DXY 75.44, -0.16, -0.21%
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The euro-zone economy registered quarter-over-quarter growth of 0.4%. The figure fell short of the 0.6% increase forecast by economists, largely due to a weaker-than-expected outcome turned in by France, the region's second-largest economy.
Still, the confirmation of the return to growth resulted in "little drama" for the euro, which made no big moves in reaction to the series of national and regional GDP data, said Daragh Maher, currency strategist at Calyon.
Technical considerations appeared to be the biggest factor in Friday's currency dealings, he said.
The euro changed hands at $1.4886, up from $1.4841 late in the prior North American session. The single currency fell 0.4% to 133.73 yen and lost 0.3% against the pound to trade at 89.28 pence
The dollar bought 89.81 yen, down from 90.35 yen in late North American trading on Thursday.
A modest return to risk appetite was seen triggering some weakness in the dollar, said strategists at Brown Brothers Harriman. European equities traded mixed in the final session of the week, while U.S. stock index futures pointed slightly higher. Read about Europe Markets. See Indications column on U.S. stock index futures.
"While benchmarks for other asset classes (stocks, commodities, etc.) have all pushed to record highs, the more risk-attuned yen crosses have actually been developing long-term, broad congestion patterns," said DailyFX Strategist John Kicklighter.
On Thursday, the dollar rose against major counterparts amid calls for strengthening the U.S. currency by leaders gathered in Singapore at a meeting of finance ministers from the Asia-Pacific Economic Cooperation group.
The dollar bought 89.81 yen, down from 90.35 yen in late North American trading on Thursday.
A modest return to risk appetite was seen triggering some weakness in the dollar, said strategists at Brown Brothers Harriman. European equities traded mixed in the final session of the week, while U.S. stock index futures pointed slightly higher. Read about Europe Markets. See Indications column on U.S. stock index futures.
"While benchmarks for other asset classes (stocks, commodities, etc.) have all pushed to record highs, the more risk-attuned yen crosses have actually been developing long-term, broad congestion patterns," said DailyFX Strategist John Kicklighter.
On Thursday, the dollar rose against major counterparts amid calls for strengthening the U.S. currency by leaders gathered in Singapore at a meeting of finance ministers from the Asia-Pacific Economic Cooperation group.
