Dollar Climbs After Better-than-expected U.S. Retail Sales Data

The U.S. dollar strengthened against its key counterparts in the European session on Friday, after a data showed that nation's retail sales grew more than forecast in November.

Data from the Commerce Department showed that the retail sales edged up by 0.2 percent in November after spiking by an upwardly revised 1.1 percent in October.

Economists had expected retail sales to rise by 0.1 percent compared to the 0.8 percent increase originally reported for the previous month.

Excluding a modest increase in sales by motor vehicles and parts dealers, retail sales still rose by 0.2 percent in November after jumping by an upwardly revised 1.0 percent in October. The uptick in ex-auto sales matched economist estimates.

Traders look ahead to next week's monetary policy meeting of the Federal Reserve for more direction.

The Fed is widely expected to raise interest rate by 25 basis points, but contrary to earlier indications and expectations, the central bank is unlikely to keep hiking rates in the coming year.

The greenback rose against its major rivals in the Asian session, with the exception of the yen.

The greenback appreciated to more than a 2-week high of 1.1270 against the euro, after falling to 1.1365 at 7:45 pm ET. The next possible resistance for the greenback is seen around the 1.11 level.

Preliminary data from the Federal Statistical Office showed that Germany's wholesale price inflation slowed in November, entirely reversing the acceleration seen in the previous month.

The wholesale price index rose 3.5 percent year-on-year following a 4 percent increase in October. The measure climbed at 3.5 percent in September.

The greenback spiked up to 0.9980 against the Swiss franc, its strongest since December 6. If the greenback rises further, 1.01 is possibly seen as its next resistance level.

The greenback added 1.05 percent to hit a 2-day high of 1.2530 against the pound, following a decline to 1.2662 at 5:45 pm ET. On the upside, 1.24 is likely seen as the next resistance level for the greenback.

The greenback firmed to 0.7151 against the aussie, a level not seen so far this month. The greenback is poised to challenge resistance around the 0.70 region.

The U.S. currency reached as high as 113.68 against the yen, up from a low of 113.42 hit at 9:00 pm ET. The greenback is likely to challenge resistance around the 116.00 area.

Data from the Bank of Japan showed that an index of business and manufacturing sentiment in Japan held steady in the fourth quarter of 2018.

The large manufacturing index was unchanged with a score of +19, beating expectations for +18. The outlook came in at +15, shy of forecasts for +17 and down from +19 in the previous three months.

The greenback held steady against the kiwi, after rising to more than a 2-week high of 0.6778 at 3:55 am ET. The pair was valued at 0.6854 at yesterday's close.

The greenback advanced to a 3-day high of 1.3401 against the loonie and held steady thereafter. The pair was valued at 1.3351 when it ended deals on Thursday.

The U.S. business inventories for October and Markit's preliminary services PMI for December are scheduled for release shortly.