Investing.com - The U.S. dollar inched higher on Friday as investors waited for data on the strength of the U.S. economy in the second-quarter.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.06% to 94.63 as of 5:34 AM ET (9:34 GMT).
The second-quarter gross domestic product is released at 8:30 AM ET (12:30 GMT). Investors will watch the numbers closely for signs of a strengthening economy, with traders expecting the U.S. to register its strongest expansion in four years. U.S. President Donald Trump predicted Thursday night that the economy would expand by 4%, saying “if it has a four in front of it, we’re happy.”
Strong economic growth would support expectations for the Federal Reserve to continue gradually increasing interest rates.
The dollar was also boosted by trade talks between the U.S. and European Union. Trump and European Commission President Jean-Claude Juncker meet on Wednesday and agreed to not impose car tariffs as the countries begin negotiations to cut trade barriers.
The dollar was lower against the safe-haven yen, with USD/JPY decreasing 0.04% to 111.18. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
Elsewhere, the pound inched down, with GBP/USD falling 0.10% to 1.3096. The euro was also lower, with EUR/USD down 0.10% to 1.1630.
The Australian dollar was flat, with AUD/USD at 0.7376, while NZD/USD fell 0.29% to 0.6768. The loonie was higher against the greenback, with USD/CAD down 0.05% to 1.3065.