The dollar strengthened, consolidating after broad selling on the back of data showing strong US growth, gaining over a cent on the single currency.
- Equities took a sharp downturn at the end of last week, having rallied after the positive US GDP data, most likely as a result of end of month profit taking, which buoyed demand for the greenback.
- Data also showed that US consumer spending fell for the first time in five months in September, coinciding with the end of the government’s car scrappage scheme.
- The US Commerce Department says spending dropped 0.5% in September, compared with a 1.4% rise in August, which encouraged investors to buy back into the haven currency.
- The US dollar extended gains in the afternoon, pushing the euro down near three-week lows after data showed that a US Midwest manufacturing index was stronger-than-expected failed to heighten risk appetite.
- The euro has climbed in trading this morning with the price currently hovering around the mid 1.47 mark.
Related posts:
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- The euro made ground against the dollar on Friday, but has relinquished its gains this morning
- Weak US data enabled the US dollar to continue clawing back losses against the euro
- The pound made further ground against the US dollar on Friday, buoyed by positive market sentiment
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