FX round-up: Sterling ends week on mixed note after positive UK data

Sterling put in a mixed performance Friday as it made minor gains against the dollar and euro following a string of positive UK data, but fell against most commodity currencies.

At about 17:14 GMT, sterling was up 0.01% to $1.2498, and up 0.12% to €1.1742. The dollar-spot index was down 0.02% to $100.630.

IG market analyst Joshua Mahony said sterling benefited this morning after UK construction output, industrial and manufacturing production and trade data outstripped market views.

"It is clear that with a rock-bottom pound, there are significant benefits to business within the lull before Brexit," said Mahony in a statement.

Sterling also eked out gains versus South Africa's rand and Japan's yen, but was modestly lower against the Canadian, New Zealand and Australian dollars.

Michael Hewson, chief market analyst at CMC Markets UK, said the aussie had benefited from the latest China trade data, because of how closely linked Australia's capability was linked to China's economy.

"The recent Australian trade surplus should have been an early indicator for this morning’s Chinese data," said Hewson in a statement.

He added that the loonie was also outperforming after latest jobs data there revealed unemployment fell to 6.8%, while adding 48.3k jobs, beating expectations of a 10k decline.

"The US dollar has continued to build on its gains this week as it looks to post its first positive week this year after those Trump tax comments," said Hewson.

On Friday, the greenback, like the UK currency, was softer against the aussie, loonie and kiwi, and also the rand. It made minor ground on the euro and yen.

Chris Saint, senior analyst at HL Currency Service, observed that the biggest moves amongst major currency pairings over the last 24hrs were inspired by Trump's tax comments.

The controversial US president promised he would release details of "something phenomenal" in 2-3 weeks relating to his tax plans.

"This has restored hopes his fiscal stimulus measures will impress investors, pushing the dollar up on expectations of higher US interest rates and the Japanese yen down on receding safe haven demand," said Saint.