Dollar Trading Mixed Ahead Of The Weekend

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The dollar is turning in a mixed performance against its major rivals Friday afternoon. The buck is losing ground against its major European rivals, despite concerns over the Italian budget. Meanwhile, the dollar is rising against the Japanese Yen.

After a month of stagnation in August, the National Association of Realtors released a report on Friday showing existing home sales in the U.S. tumbled by much more than anticipated in the month of September.

NAR said existing home sales plunged by 3.4 percent to an annual rate of 5.15 million in September after edging down by 0.2 percent to a revised rate of 5.33 million in August.

Economists had expected existing home sales to drop by 0.7 percent to a rate of 5.30 million from the 5.34 million originally reported for the previous month.

The European Commission said Italy's 2019 budget draft is in serious breach of EU budget rules.

In a letter to the Italian government, Commissioners Valdis Dombrovskis and Pierre Moscovici wrote that the government's budget plans represent "an obvious significant deviation" from recommendations adopted by the Council for 2019.

"With Italy's government debt standing at around 130% of GDP, our preliminary assessment also indicates that Italy's plans would not ensure compliance with the debt reduction benchmark agreed by all Member States," the letter stated.

The dollar rose to an early high of $1.1433 against the Euro Friday, but has since retreated to around $1.1510.

Euro area current account surplus increased in August from the previous month, preliminary data from the European Central Bank showed on Friday. The current account surplus rose to EUR 24 billion from EUR 19 billion in July. A year ago, the surplus was EUR 39 billion.

The buck has dropped to around $1.3065 against the pound sterling Friday afternoon, from an early high of $1.3011.

The UK budget deficit reached its lowest September level in 11 years, data from the Office for National Statistics showed Friday. Public sector net borrowing excluding public sector banks was GBP 4.1 billion, which was GBP 0.8 billion less than in September 2017. This was the lowest September deficit since 2007.

The greenback has climbed to around Y112.530 against the Japanese Yen Friday afternoon, from an early low of Y112.192.

Consumer prices in Japan were up 1.2 percent on year in September, the Ministry of Internal Affairs and Communication said on Friday. That was shy of expectations for an increase of 1.3 percent, which would have been unchanged from the August reading.
 
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