The U.S. dollar weakened on Friday after data showed that the U.S. economy growth was slowing. The report, which showed an uptick in business investment but a decline in U.S. exports, continued the post recession trend of lackluster growth. Fourth-quarter GDP grew 1.9% compared to expectations of 2.2%. It was a significant decline from the third quarter number of 3.5% and left GDP for the year as 1.6% down from 2.6% in 2015.
Meanwhile the Pound weakened against the greenback. Many traders remain bearish on sterling, which has climbed roughly 5% since a recent low earlier this month but is still down about 16% since June’s U.K. vote to leave the European Union.
The euro was little changed and the yen slid 0.5 percent to 114.53. The Mexican peso however, surged on Friday about 1.5% against the greenback capping a volatile week as traders weighed U.S. President Donald Trump’s pledges to build a border wall and renegotiate the North American Free Trade Agreement against comments that appeared more conciliatory. The peso ended the week with a 3.3% gain against the greenback.
In equities, the S&P 500 fell 1 percent to close at 2294.69 while the Dow Jones Industrial Average still managed to end the first week of the Trump administration above the 20000 mark at 20093.78. The Stoxx Europe 600 fell 0.4 percent following three days of gains.
In commodities, Gold futures fell 0.1 percent to settle at $1,191.10 an ounce, the lowest price in more than two weeks. Gold has now fallen four straight days in the longest slump since November. Meanwhile West Texas Intermediate crude for March delivery settled down 1.1% or 61 cents at $53.17 a barrel on the New York Mercantile Exchange. It has lost 5 cents, or 0.1%, for the week. Brent, the global benchmark, settled down 1.3% or 72 cents at $55.52 a barrel. It gained 3 cents, or 0.1%, for the week.
Chart of the Day
The betting market are pricing in a near certainty that the U.K. will trigger Article 50 in the first half of this year.
