Friday, 27 November 2015

Dollar subdued in post-holiday trade, euro under pressure

The dollar, euro and yen stuck to familiar ground on Friday in thin trade after the U.S. Thanksgiving Day holiday.
The dollar index .DXY stood at 99.844, up slightly and not far from an 8-1/2 month peak of 100.170 scaled on Wednesday. For the week, it was up about 0.2 percent.
Against the yen, the dollar was nearly flat at 122.60 JPY=, remaining in consolidation mode after reaching a three-month high of 123.77 on Nov. 18, and up from this week's low of 122.26.
Japanese data on Friday painted a mixed picture, though some market watchers were optimistic overall.
Japanese Economics Minister Akira Amari told reporters on Friday that the unexpected fall in household spending shows that some consumers still lack confidence in the economy.
Amari said the government will maintain its target of halving the primary budget deficit in fiscal 2015 when it compiles an extra budget for economic stimulus.
Japanese Finance Minister Taro Aso said on Friday that the cabinet was instructed by Prime Minister Shinzo Abe to compile an extra budget for the current fiscal year.
Against the yen, the euro edged up slightly to 130.09 EURJPY=R, but was still not far off a 7-month low of 129.77 plumbed on Wednesday.
The euro managed to hold above $1.0600 EUR= and last stood at $1.0610, but it remained within reach of a 7-1/2 month trough of $1.0565 set on Wednesday.

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