An index that tracks the U.S. dollar moved into positive territory on Friday after gross domestic product data showed the U.S. economy grew at an annualized rate of 3.2%, much faster than expected.
The ICE U.S. Dollar Index, DXY, -0.07% which tracks the value of the buck against six of its trading rivals, was marginally higher at 98.197. The index shot to a 2-year high on Thursday intraday.
Analysts polled by MarketWatch had expected a 2.3% growth GDP rate.
Read: Economy grows 3.2% in first quarter, GDP shows, much stronger than anticipated
What are analysts saying?
“Solid growth, weak inflation. That’s what the GDP report provided,” wrote Valeria Bednarik, American chief analyst at FXStreet. “The market’s reaction was quite limited as a strong number was mostly priced in.”
“Core PCE provided sort of a negative surprise, as market players were waiting for some inflationary pressures to lift chances of rate hikes,” she added.
Core PCE fell to 1.7% from 1.9%. The PCE index refers to personal-consumption expenditures; the core measure excludes food and energy prices. The PCE is seen as the Fed’s favored inflation measure.
Read: What a potential cut in Italy’s credit rating means for an already sinking euro
Biggest movers
The New Zealand NZDUSD, +0.5886% dollar rose 0.5% versus the U.S. unit after a better-than-expected ANZ consumer-confidence report. The report showed an increase of 1 point in confidence to 123, while perceptions of current conditions rose 5 points to 130.
ANZ consumer confidence
In most recent trade the kiwi was higher by 0.7% at 0.6669 versus the dollar.
The neighboring Aussie dollar AUDUSD, +0.3563% rose 0.5% to 0.7048.
Read: Swiss Central Bank head defends negative rates
The majors
Major currencies jumped between gains and losses after the GDP report.
The euro EURUSD, +0.1257% fell to a fresh 23-month low at $1.1112 after the release before settling around $1.1144, unchanged on the day.
The British pound GBPUSD, +0.1241% was at $1.2916, compared with $1.2898.
The Japanese yen USDJPY, +0.04% was unchanged at ¥111.62.
Read: How a flight to safety amid a weakening global economy could complicate central-bank policy
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