Economic data revealed that Consumer Spending in the U.S increased 0.4 percent, which was less than expected. This was a contributing factor to the weakening of the Dollar against its world currency peers. Weekly metrics led investors to believe that the Federal Reserve is less likely to boost interest rates. The greenback fell to $1.4319 per Euro at 5 pm GMT on Friday.
The Canadian Dollar also dipped on reports that the U.S. economy grew at a slower pace. This discouraged speculations that the Canadian Central Bank will raise interest rates. The Loonie traded at its lowest level in two months against the greenback.
Meanwhile, the Swiss Franc rose to higher levels versus the Euro and the U.S. currency on increased debt worries and aversion to risk in the market. Other data showed that Switzerland’s leading economic indicator remained at the highest point in five years. Free Forex strategists believe the Swiss Franc advanced on bets that the Swiss Central Bank will hike interest rates despite the expanding economy.
Further FX news indicated that the Pound Sterling dropped against most of its counterparts, including the Euro, as analysts believe that House Prices won’t bring recovery or influence the BOE to raise interest rates.
The New Zealand Dollar strengthened against the greenback and traded at its highest price after Finance Minister, Bill English, issued a statement indicating that China Investment Corp. has expressed interest in the country’s bonds.