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Forex - Dollar holds steady after U.S. data disappoints

Published 25/08/2017, 13:42
© Reuters.  Dollar index little changed after U.S. durable goods orders report
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Investing.com - The dollar held steady against the other major currencies on Friday, after the release of disappointing U.S. data as investors awaited speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi later in the day in Jackson Hole.

The U.S. Commerce Department said durable goods orders fell more than forecast in July, although the core reading rose slightly more than expected.

Market participants were looking ahead to to see if the U.S. central bank chief will offer any clues on future policy moves, although little new information was expected.

More hopes surrounded Draghi's speech and potential indications on when the ECB plans to begin tapering its monthly purchase program.

The greenback was already hit this week by fresh U.S. political tensions, after U.S. President Donald Trump said he would be willing to shut down the government to finance a wall along the U.S.-Mexico border and that he might terminate the NAFTA trade treaty.

EUR/USD held steady 1.1808 after data earlier showed that the German Ifo business climate index fell to only 115.9 in August from 116.0 the previous month. Analysts had expected a drop to 115.5.

The yen turned lower, with USD/JPY up 0.16% to 109.74, while USD/CHF was little changed at 109.74.

Elsewhere, GBP/USD added 0.19% to 1.2825, just off the previous session's two-month low of 1.2796.

The Australian dollar remained stronger, with AUD/USD up 0.10% at 0.7912, while NZD/USD held steady at 0.7214.

Meanwhile, USD/CAD slipped 0.10% to 1.2509, the lowest since August 1.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.17 by 08:40 a.m. ET (12:40 GMT).

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