The last day of the trading week was relatively quiet start due to lack of key data releases, with broad dollar strength being the main theme in currency markets today.
The dollar is set to complete its 11th consecutive week of gains in a basket of six major currencies.
Today’s release of final US GDP for the second quarter rose to 4.6% as expected above the previous estimate of 4.2% and well above the initial estimate of just 3%, helped the dollar rally versus the yen to 109.27.
The euro fell towards the 22-month low of 1.2698 hit yesterday after trading a range in the Asian session and early European session.
Both German GfK consumer confidence and import prices were soft and weighed on the single currency. A broadly stronger greenback did not help. Next week’s European Central Bank policy announcement will be a key risk for the euro.
Sterling struggled to stay above the key 1.6300 level in an environment of broad dollar strength today.
The pound was trading steady for most of the day , being supported by hawkish comments from Bank of England Governor Mark Carney who signaled yesterday that that the point at which interest rates will rise is getting closer.
The US GDP data boosted the greenback and pushed cable lower towards 1.6264. Next week’s focus will be final UK GDP figures for the second quarter and the release of PMIs for the manufacturing, construction and services sectors.