The greenback picked up steam on Friday even when U.S. consumer optimism got to its lowest level since Donald Trump was elected president and having the government shutdown moving into its 28th day.
It is getting support from a report that came stronger than expected for U.S. industrial production in December, reaching an impressive 1.1% gain from manufacturing on November. This gain and positive surprises relieve some of the worries about the strength of the economy after the slowdown at the end of the year.
They also underline the relative strength of the U.S. compared to the Eurozone, in which the Bank of Italy was talking on Friday and warning that the country may have slid into recession with a second straight decline in GDP in the fourth quarter of last year.
But, negatives for dollar sentiment haven’t vanished, as the Congress and Trump continue to struggle with their impasse over the budget being over 800,000 federal workers remain furloughed.
The shutdown could generate a negative impact on the economy with business leaders have warned this week as they presented their quarterly earnings.
The shutdown, at the same time, affected U.S. consumers already, since the University of Michigan’s Consumer Survey Center showed that consumer sentiment plummeted to a two-year low of 90.7 in January from 98.3 a month earlier.
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