The U.S. dollar climbed against its major rivals in the European session on Friday, as the U.S. economy expanded more than initially estimated in the first quarter and durable goods orders eased less than expected in April, adding to hopes for a Fed rate hike next month.

Data from the Commerce Department showed that the economy grew much more than initially estimated in the first three months of the year.

The gross domestic product climbed by 1.2 percent in the first quarter compared to the previously reported 0.7 percent increase.

Economists had been expecting a more modest upward revision to the pace of GDP growth to approximately 0.9 percent.

A separate report showed that new orders for manufactured durable goods pulled back by less than expected in the month of April.

The report said durable goods orders slid by 0.7 percent in April after jumping by an upwardly revised 2.3 percent in March. Economists had expected orders to slump by 1.4 percent.

Excluding a drop in orders for transportation equipment, durable goods orders still fell by 0.4 percent in April after climbing by 0.8 percent in March. Ex-transportation orders were expected to rise by 0.4 percent.

Meanwhile, the G7 leaders are gathering for a two-day summit in Italy today, with issues on trade and climate change to be the key topics.

Talks are expected to be challenging, as the U.S. President Donald Trump confronted with EU leaders at a Brussels meeting on Thursday, accusing Germany for its trade polices.

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

Reversing from an early low of 1.1235 against the euro, the greenback climbed to a 2-day high of 1.1181. The next possible resistance for the greenback is seen around the 1.10 mark.

Survey results by Ifo showed that confidence among Germany's exporters was the highest in nearly three-and-a-half years in May as exports continue to rise.

The Ifo Export Expectations Index rose to 14.7 balance points in May from 13.8 balance points in April, marking the highest level since January 2014.

Extending early rally, the greenback firmed to more than a 4-week high of 1.2810 against the pound. Continuation of the greenback's uptrend may see it challenging resistance around the 1.26 region.

The greenback bounced off to 0.9735 against the Swiss franc, from a 4-day low of 0.9696 hit at 6:15 am ET. The currency is heading to pierce a 2-day high of 0.9745 set in the Asian session. On the upside, 0.99 is possibly seen as the next resistance level for the greenback.

The greenback staged a tepid recovery to 111.19 against the yen, from a 3-day low of 110.88 hit at 7:00 am ET. The pair was valued at 111.83 when it closed Thursday's trading.

Data from the Ministry of Internal Affairs and Communications showed that overall consumer prices in Japan gained 0.4 percent on year in April. That was in line with expectations and up from 0.2 percent in March.

Core consumer prices were up 0.3 percent on year - shy of forecasts for 0.4 percent and up from 0.2 percent in the previous month.

On the flip side, the greenback declined to 0.7077 against the NZ dollar, its lowest since March 21. Continuation of the greenback's downtrend may see it challenging support around the 0.72 level.

The greenback was trading lower at 0.7461 against the aussie and 1.3453 against the loonie, after having advanced to multi-day highs of 0.7422 and 1.3497, respectively. The greenback is likely to find support around 0.76 against the aussie and 1.33 against the loonie.

The University of Michigan's final consumer sentiment index for May is due at 10:00 am ET.

NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more NZD vs US Dollar Charts.
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more NZD vs US Dollar Charts.