Forex - Dollar Little Changed With U.S. Data on Tap

Forex - Dollar Little Changed With U.S. Data on Tap

The dollar was little changed against other majors on Thursday, as investors remained on the sidelines ahead of a highly anticipated report on U.S. inflation due later in the day.

Sentiment on the greenback was fragile ahead of the upcoming U.S. inflation data, as it could be a determining factor in the Federal Reserve's future interest rates decisions.

Demand for the U.S. dollar was boosted on Wednesday by hopes a tax reform would soon be implemented by the administration, after U.S. President Donald Trump reached out to both Democrats and Republicans this week.

The yen was fractionally higher, with USD/JPY down 0.08% at 110.39, while USD/CHFrose 0.23% to 0.9666.

Safe-haven demand was still on the weak side as risk appetite strengthened this week after Hurricane Irma appeared to have caused less damage than feared and in the absence of any new provocations from North Korea.

Elsewhere, EUR/USD added 0.13% to 1.1890, while GBP/USD slipped 0.11% to 1.3194 ahead of the Bank of England's monthly policy decision.

The BoE was expected to leave its monetary policy unchanged but it could however give indications on the future pace of interest rates, after strong inflation data published earlier in the week boosted expectations for a more hawkish stance from the central bank.

The Australian was stronger, with AUD/USD up 0.24% at 0.80053, while NZD/USD edged down 0.08% to 0.7235.

Earlier Thursday, the Australian Bureau of Statistics reported on Thursday that the number of employed people rose by 54,200 in August, blowing past expectations for a 15,000 gain.

The report also showed that the unemployment rate remained unchanged at 5.6% last month, in line with market expectations.

Meanwhile, USD/CAD was almost unchanged at 1.2175.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 92.34 by 05:20 a.m. ET

(09:20 GMT).

 

Source : https://www.investing.com

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