The U.S. dollar firmed against other major currencies in European deals on Friday as traders continued to assess the timing of the Federal Reserve wrapping down stimulus measures after upbeat economic data on jobless claims and Chicago-area business activity released yesterday.
The greenback was supported after the Federal Reserve statement on Wednesday had sounded slightly less dovish than expected. The statement raised concerns that the Fed might not delay plans to begin tapering its stimulus program for as long as previously anticipated.
Traders await the Institute for Supply Management's report on manufacturing activity for October. Economists expect the ISM's manufacturing index to dip to 55.0 from 56.2.
The Fed President James Bullard will speak on the economy and monetary policy in St. Louis.
The greenback climbed to 0.9116 against the franc for the first time since October 17. If the greenback strengthens further, it may face resistance around the 0.92 area.
Switzerland's industrial growth slowed more-than-expected in October, following an improvement in the previous month, results of a survey showed today.
The seasonally adjusted Purchasing Managers' Index fell to 54.2 from September's 55.3, the Credit Suisse said.
The greenback appreciated to fresh 2-week high of 1.5962 against the pound from Thursday's close of 1.6038. Further uptrend could lead the greenback to test resistance at the 1.585 level.
Growth in British manufacturing activity eased slightly in October, a survey by Chartered Institute of Purchasing & Supply and Markit Economics revealed today.
The purchasing managers' index fell to 56 in October from a downwardly revised reading of 56.3 in September.
The greenback advanced to 1.3509 against the euro, its strongest level since October 16. The greenback may possibly seek resistance at the 1.34 zone.
The euro has been trading lower since the Asian session as an unexpected slow-down in the eurozone inflation and a record high jobless rate increased the odds for a rate cut.
The greenback rose back to 98.32 against the yen, recovering from a 3-day low of 97.81 hit at 12:50 am ET. On the upside, the greenback may aim resistance at the 99.00 level.
