The dollar is gaining ground against its major rivals Friday afternoon, despite a pair of weaker than expected U.S. economic reports. The gains are being driven by optimism over U.S. tax reform after some comments from President Trump this morning.
“We’re putting in a tremendous child tax credit, and it is increasing on a daily basis,” Trump stated to reported this morning. The comment eased investor concerns over the passage of the bill. Senator Marco Rubio had stated previously that he would not support the bill unless the child tax credit was improved.
Growth in New York manufacturing activity slowed by more than anticipated in the month of December, according to a report released by the Federal Reserve Bank of New York on Friday.
The New York Fed said its general business conditions index dropped to 18.0 in December from 19.4 in November, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to dip to 18.6.
After reporting a much bigger than expected increase in U.S. industrial production in the previous month, the Federal Reserve released a report on Friday showing that production rose by less than expected in the month of November.
The Fed said industrial production edged up by 0.2 percent in November after jumping by an upwardly revised 1.2 percent in October. Economists had expected production to climb by 0.3 percent compared to the 0.9 percent increase originally reported for the previous month.
The dollar has climbed to around $1.1750 against the Euro Friday afternoon, from an early low of $1.1811.
The Eurozone trade surplus declined to a three-month low in October as exports dropped amid an increase in imports, figures from Eurostat showed Friday. The trade surplus fell to a seasonally adjusted EUR 19 billion in October from EUR 24.5 billion in September. This was the lowest since July. The surplus was forecast to decline to EUR 24.3 billion.
The buck has risen to around $1.3325 against the pound sterling Friday afternoon, from a low of $1.3447 this morning.
The greenback has advanced to around Y112.625 against the Japanese Yen this afternoon, from a low of Y112.028 this morning.
Confidence among Japanese large manufacturers increased for the fifth straight quarter to an 11-year high at the end of 2017, as strong exports and rising corporate profits underpin activity, a closely watched survey showed Friday.
The large manufacturers’ sentiment index rose to 25 from 22 a quarter ago, according to the quarterly Tankan survey from Bank of Japan. This was the highest score since the end of 2006.
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Source:: Dollar Rising On Tax Reform Optimism