Dollar Inches Higher against Other Major Currencies

The dollar climbed higher against other major currencies on Friday. U.S. data and the vote of a major U.S. tax reform plan lending support to the greenback.

Forex dollar international paper bills

The U.S. dollar index is used to measure the greenback’s strength against a trade-weighted basket of six international major currencies. It rose 0.12 percent at 92.95 by 02:05 A.M. ET (06:05 GMT).

The yen and Swiss franc had little change as USD/JPY was at 113.37 and USD/CHF at 0.9889.

In a different place, the Australian dollar was stronger. AUD/USD rose 0.17 percnet at 0.7715, while NZD/USD at 0.7020 held steady.

USD/CAD on the other hand witnesses little to no change at 1.2740.

Volumes in trading were expected to remain ahead of Monday’s Christmas holiday.

Data was released on Thursday. It showed that during the third quarter, the U.S. economy had grown by 3.2 percent. It was a descending alteration from the previous reading of 3.3 percent. Despite this, it was still considered as the fastest pace in more than two years.

The report followed the House of Representatives who gave the final approval to the biggest U.S. tax overhaul in 30 years. It also marked U.S. President Donald Trump’s first political victory.

Euro Drops after Catalan Vote

On the other hand, the euro fell on Friday.

EUR/USD was down 0.14 percent at 1.1858 while GBP/USD held steady at 1.3381.

Pressure came following a Catalan vote on Thursday which resulted to the victory for separatists. This then caused new concerns to surface after the political turmoil in Spain.

Spanish government hoped that the Catalan election will take away control from pro-independence parties. They had been leaning towards the possibility of they will lose control of the regional parliament and end their campaign to force a split.

However the opposite happened. 96 percent of the ballots counted that the Catalonia’s regional parliament will be elected. The separatist parties were seen winning 70 seats of the 135.

“There is support around $1.1800 level which will likely limit the euro’s downside,” said senior technical analyst Yutaka Miura.

“This time of year, though, ahead of the holidays, many market participants are away and liquidity is thin, so we need to watch cautiously,” he added.

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