FX Roundup: Dollar sees mixed fortunes as weekend approaches

The dollar saw mixed fortunes against a basket of global currencies on Friday, as the US wholesale inventories data for August beat market expectations.

According to figures published earlier in the session, inventories rose 0.1% month-on-month compared to a 0.3% downwardly revised decline in July, and with analysts expecting a flat reading.

Wholesale inventories of durable goods rose 0.3% month-on-month in August, as a 0.3% decline in automotive inventories was offset by an increase in computer and machinery, with the former rising 1.9%, while the latter climbed 0.5%. Nondurable goods inventories declined 0.2% month-on-month to mark a third consecutive month of decline.

With little else around in terms of data and Atlanta Federal Reserve’s Dennis Lockhart saying a US interest rate hike in October or December was still "likely appropriate", the dollar rose 0.31% against the yen changing hands at JPY120.30 by 1608BST. Meanwhile, the pound sterling headed 0.23% lower against the greenback exchanging at $1.5312.

The euro rose 0.76% against the greenback, changing hands at €1.1362. Earlier in the week, US exports declined 2% to $185.1bn, hitting their lowest level in three years, driven lower by a drop in overseas sales of US-produced petroleum and other industrial supplies.

Commodities-linked currencies got further respite as the New Zealand dollar rose 0.54% against the greenback to change hands at US$0.6703, while the Australian dollar rose 1.05% changing hands at US$0.7336.

Kit Juckes, head of forex at Societe Generale, said, “The week is petering out quietly on the news front. Risk bulls have the upper hand and there's no point fighting them without a catalyst for the mood to change. But I'd rather buy US break-evens than go surfing in emerging market or antipodean forex until shark danger is reduced.”

Finally, the dollar was 0.64% lower against its Canadian counterpart changing hands at CAD$1.2933, having breached the USD/CAD 1.30 level in early US trading.