Forex – Dollar Hovers Near 3-Year Lows, U.S. Housing Sector Data on Tap

Dollar remains under pressure of U.S. data – The U.S. dollar was hovering near three-year lows against other major currencies on Friday, as fresh concerns over the U.S. deficit weighed on the greenback and as investors eyed the release of U.S. housing sector data due later in the day.

The greenback turned broadly lower due to mounting concerns over the deficit in the U.S., which is projected to climb near $1 trillion in 2019 following the announcement of infrastructure spending and large corporate tax cuts.

The dollar had initially strengthened after the U.S. Commerce Department reported on Wednesday that consumer prices rose more than expected in January by , sending U.S. bond yields higher.

Data on Thursday showed that the U.S. producer price index rose in line with expectations by last month.

Rising inflation would be a catalyst to push the Federal Reserve toward raising interest rates at a faster pace than currently expected.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.12% at 88.36 by 05:15 a.m. ET (09:15 GMT), just off a three-year trough of 88.16 hit overnight.

was down 0.11% at 105.99, the weakest level since November 2016, while fell 0.29% to 0.9197.

Elsewhere, the euro and the pound were higher, with up 0.23% at 1.2533, while held steady at 1.4102.

Earlier Friday, the UK Office for National Statistics reported that retail sales rose , disappointing expectations for an increase of 0.5%.

The Australian and New Zealand dollars were stronger, with up 0.52% at 0.7985 and with rising 0.31% to 0.7431.

Meanwhile, shed 0.25% to trade at 1.2458.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.