Dollar index to two weeks a new low, US GDP data past


Dollar index at fresh 2-week lows

The dollar fell to two weeks a new low against the other major currencies on Friday after the Bank of Japan disappointed market expectations at the beginning of the session and the lack of action by the Federal Reserve on Wednesday as investors They awaited the release of economic data of US growth.

USD / JPY fell 1.59% to trade at a minimum of three weeks of 103.57.
Following its monthly policy meeting on Friday, the Bank of Japan announced a modest increase in purchases of exchange-traded funds (ETFs), but maintains its objective of monetary base 80 billion yen, and the pace of purchases for other assets.

The central bank also maintained the negative interest rates unchanged at -0.1%.
The move disappointed the expectations of a stimulus package of nearly 28 zillion yen promised by Prime Minister Shinzo Abe earlier this week to boost the economy.

The policy statement came after the Fed left interest rates unchanged at the conclusion of its policy meeting two days on Wednesday, in a widely expected move.

In its statement, the Fed said that “short-term risks to the economic outlook have diminished,” and that the labor market has “strengthened”.

Market participants now eyeing the release of second quarter US economic growth data due Friday afternoon for more indications about the strength of the economy.

The EUR / USD rose 0.22% to 1.1101.

In a preliminary report, according to Eurostat on Friday the consumer price index in the euro zone grew at an annualized rate of 0.2% in July, beating expectations for a rise of 0.1% after an increase of 0.1% the previous month.

Core CPI, which excludes food, energy, alcohol and snuff, increased by 0.9% last month, year after year, in line with expectations.

The pound remained stable, with GBP / USD at 1.3171, while USD / CHF fell 0.40% to 0.9768.

Also Friday, the Bank of England reported that net lending to individuals rose to £ 5.2 billion in June £ 4.5 billion in May, whose figure was revised up from an estimated £ 4.3 billion previously .

Analysts had expected net lending to individuals up to hit £ 4.2 billion last month.
But gains were capped Pound investors were devoted to policy meeting the Bank of England next week amid growing expectations of a rate cut.

The Australian dollar remained stable, with AUD / USD to 0.7504 while NZD / USD up 0.34% to 0.7094.

Elsewhere, the USD / CAD up 0.17% to 1.3179.

The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six major currencies, was down 0.37% to 96.33, the lowest level since July 15.