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Forex - Dollar Remains Moderately Lower Vs. Rivals, U.S. Data Ahead

Published 18/01/2018, 10:15
© Reuters.  Dollar still on the downside ahead of U.S. economic reports
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Investing.com - The dollar remained moderately lower against other major currencies on Thursday, as investors remained cautious ahead of a flurry of U.S. economic reports due later in the day.

Market participants were looking ahead to the release of U.S. data on building permits, housing starts, unemployment claims and manufacturing activity in the Philadelphia area.

The dollar has been pressured lower recently by concerns the global economic recovery will outpace U.S. growth and prompt other major central banks, including the European Central Bank to begin unwinding loose monetary policy at a faster pace.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 90.51 by 05:15 a.m. ET (09:15 GMT), off the previous session's fresh three-year trough of 89.97.

The euro and the pound were higher, with EUR/USD up 0.25% at 1.2215 and with GBP/USD adding 0.08% to 1.3838.

The euro has strengthened broadly since last week's minutes of the ECB’s December meeting boosted expectations that policymakers are preparing to wind down their bond buying stimulus program.

The yen held steady, with USD/JPY at 111.35, while USD/CHF declined 0.42% to 0.9616.

Elsewhere, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.10% at 0.7975 and with NZD/USD gaining 0.25% to 0.7288.

Data earlier showed that China’s economy grew at a faster than expected pace in the fourth quarter, helped by strong export growth and a rebound in the industrial sector.

China is Australia's biggest export partner and New Zealand's second biggest export partner.

Meanwhile, USD/CAD was almost unchanged at 1.2438.

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