NEW YORK :The dollar slipped for a second straight session, as a recent ascent lost steam, but the greenback was still on track for a fourth straight week of gains after data this week kept interest rate expectations for the Federal Reserve in check.
The Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, jumped 0.5 per cent last month after an unrevised 0.3 per cent gain in August and above the 0.1 per cent rise estimated by economists polled by Reuters.
A separate report by the University of Michigan showed October consumer sentiment rose to 70.5 from 70.1, topping the 69.0 estimate, while the one-year inflation outlook fell to 2.7 per cent from the preliminary reading of 2.9 per cent but in line with September’s final result.
The dollar was poised for its fourth straight week of gains, as a run of positive economic data has quieted expectations about the size and speed of the Fed’s rate cuts, which has also lifted U.S. Treasury yields. Investors are now focusing on a key government payrolls report next week.
“We had a massive recalibration in economic expectations for the U.S. and that process seems to have largely run its course, the Fed’s policy trajectory looks much more reasonable and interest rate differentials between the U.S. and other major economies are stabilizing here,” said Karl Schamotta, chief market strategist at Corpay in Toronto.
“The dollar index, which measures the greenback against a basket of currencies, shed 0.02 per cent to 104.03, with the euro up 0.02 per cent at $1.083.
In Europe, a survey on Friday of German business sentiment showed confidence improved more than expected this month, snapping four straight months of declines, offering hope for some respite towards the end of the year in the economy’s battle with