FRANKFURT (MarketWatch) -- The dollar traded slightly higher against major rivals on Friday, as traders awaited the release of U.S. gross domestic product data for the fourth quarter.
The dollar index (DXY 79.02, +0.11, +0.14%) , which tracks the greenback against a trade-weighted basket of six major currencies, rose to 79.009 in recent trading, compared with 78.875 late Thursday.
The Commerce Department will release its first look at fourth-quarter GDP on Friday at 8:30 a.m. Eastern.
Economists surveyed by MarketWatch are forecasting a 5.4% annualized increase after a 2.2% gain in the third quarter. It would be the fastest growth since the 5.4% growth rate in the first quarter of 2006. Read U.S. GDP preview.
U.S. economic growth is "likely to reflect that global economic recovery is on track and provide some relief for risk-sensitive currencies," analysts at Credit Suisse wrote in a research note Friday.
The dollar gained 0.4% to 90.25 Japanese yen, while the British pound edged down 0.1% to $1.6108.
Since U.S. equities have sold off and bond yields have fallen, it is clear that the rally in the dollar is a "reflection of fear and not optimism," Kathy Lien, director of currency research at Global Forex Trading, said in a note to clients late Thursday from New York.
But "on a percentage basis, the rally in the dollar has been modest and further gains in the greenback will now be contingent upon Friday's GDP report," Lien said.
The euro was broadly unchanged at $1.3961.
Traders digested data showing that unemployment in the 16-nation euro zone reached 10% in December for the first time.
Eurostat said the unemployment rate rose to 10% from a downwardly revised 9.9% in November. The data was in line with market expectations.
