The dollar was mostly higher on Wednesday, after Chinese first quarter growth data came in slightly above estimates, while the Canadian dollar suffered following a dovish rate statement from the Bank of Canada.
This mornings data from China buoyed the market, with The Chinese Republic posting a 7.4% gain in gross domestic product for the first three months of 2014, slowing from 7.7% in the fourth quarter, but slightly ahead of expectations for growth of 7.3%.
The news sent the dollar soaring against the yen, with USD/JPY closing the session up 0.34% at 102.26.
The dollar was further supported by the release of upbeat production data for March, with industrial production rising by 0.7%, ahead of expectations for a 0.5% increase.
But it wasn’t all good news, a separate report showed that U.S. housing starts rose less than expected in March, while building permits fell, pointing to underlying weakness in the housing sector.
In Europe, the single currency came under pressure earlier in the session after official data confirmed that the annual rate of inflation slowed to 0.5% in March from 0.7% the previous month, the lowest since November 2009. The weak data added to pressure on the European Central Bank to take fresh steps to stave off the risk of deflation in the region.
But the euro clawed back losses and then some, after after Federal Reserve Chair Janet Yellen said interest rates will remain low for a considerable time.
EUR/USD closed the session at 1.3822 a gain of 0.05%.
Across the pond, sterling was in strong demand after official data showed that the U.K. unemployment rate fell to a five year low of 6.9% in the three months to February, bolstering the outlook for the wider economic recovery.
The news meant that the pound was one of the few currencies able to withstand the dollars advances on Wednesday. GBP/USD closed the session up 0.43% at 1.6798.
Elsewhere, the Canadian dollar retreated against the greenback after a somewhat dovish statement from the BoC, following its announcement that interest rates would be left on hold at 1.00%.
USD/CAD ended the session up 0.33% at 1.1016.
While the Australian dollar recovered from a six-day low after the release of more upbeat Chinese GDP data. AUD/USD ended the session virtually unchanged, edging up 0.21% to 0.9382 at the close.
Finally, the New Zealand dollar fell to one-and-a-half week lows against the greenback, after data showed that the annual rate of inflation in New Zealand slowed in the first three months of 2014.
NZD/USD closed the session down -0.16% at 0.8630.
This mornings data from China buoyed the market, with The Chinese Republic posting a 7.4% gain in gross domestic product for the first three months of 2014, slowing from 7.7% in the fourth quarter, but slightly ahead of expectations for growth of 7.3%.
The news sent the dollar soaring against the yen, with USD/JPY closing the session up 0.34% at 102.26.
The dollar was further supported by the release of upbeat production data for March, with industrial production rising by 0.7%, ahead of expectations for a 0.5% increase.
But it wasn’t all good news, a separate report showed that U.S. housing starts rose less than expected in March, while building permits fell, pointing to underlying weakness in the housing sector.
In Europe, the single currency came under pressure earlier in the session after official data confirmed that the annual rate of inflation slowed to 0.5% in March from 0.7% the previous month, the lowest since November 2009. The weak data added to pressure on the European Central Bank to take fresh steps to stave off the risk of deflation in the region.
But the euro clawed back losses and then some, after after Federal Reserve Chair Janet Yellen said interest rates will remain low for a considerable time.
EUR/USD closed the session at 1.3822 a gain of 0.05%.
Across the pond, sterling was in strong demand after official data showed that the U.K. unemployment rate fell to a five year low of 6.9% in the three months to February, bolstering the outlook for the wider economic recovery.
The news meant that the pound was one of the few currencies able to withstand the dollars advances on Wednesday. GBP/USD closed the session up 0.43% at 1.6798.
Elsewhere, the Canadian dollar retreated against the greenback after a somewhat dovish statement from the BoC, following its announcement that interest rates would be left on hold at 1.00%.
USD/CAD ended the session up 0.33% at 1.1016.
While the Australian dollar recovered from a six-day low after the release of more upbeat Chinese GDP data. AUD/USD ended the session virtually unchanged, edging up 0.21% to 0.9382 at the close.
Finally, the New Zealand dollar fell to one-and-a-half week lows against the greenback, after data showed that the annual rate of inflation in New Zealand slowed in the first three months of 2014.
NZD/USD closed the session down -0.16% at 0.8630.
