Dollar Trims Weekly Gain as Hedge Funds Take Profit
The dollar fell versus all Group-of-10 currencies and Treasuries traded mixed ahead of US retail sales data and speeches from Federal Reserve officials.
The Bloomberg Dollar Spot Index drops 0.3%, heading for its worst day since Nov. 7; it’s up by 1.3% on a weekly basis and set for its longest winning streak since February.
The pullback seen Friday is mostly down to model and macro desks taking profit on dollar longs ahead of the weekend, according to Europe-based traders.
Still, short-term positioning suggests a false break may be in play.
Traders are awaiting US retail sales data and comments from Fed officials including Austan Goolsbee and Susan Collins.
GBP/USD swings between gains and losses, trading little changed at 1.2670; cable is down a seventh week, the longest streak in a decade.
The UK economy cooled by more than expected in the third quarter after a surprise contraction in September as anxiety built over the new Labour government’s fiscal plans.
EUR/GBP rallies by 0.4% to 0.8350, highest since Nov. 6; the move is mainly driven from EUR/USD stops triggered above 1.0550: traders.
EUR/USD +0.5% at 1.0579, down 1.3% on a weekly basis.
USD/JPY reverses a 0.3% advance, and drops 0.6% to 155.39; Japan’s Finance Minister Katsunobu Kato said authorities are monitoring the forex market with a high sense of urgency and will respond to any excessive moves.
China’s economy showed encouraging signs as retail sales grew at the strongest pace in eight months.
Source : Bloomberg
