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Forex - Dollar Remains Moderately Lower With Eyes on Tax Bill

Published 02/11/2017, 10:20
Updated 02/11/2017, 10:23
© Reuters.  Dollar still on the downside ahead of U.S. tax bill announcement
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Investing.com - The dollar remained moderately lower against other major currencies on Thursday, as markets eyed a U.S. tax bill set to be unveiled later in the day.

The greenback came under pressure as U.S. lawmakers were set to announce plans for a measure that will seek up to $6 trillion in tax cuts over 10 years.

Also Thursday, U.S. President Donald Trump was expected to nominate Fed Governor Jerome Powell, seen as less hawkish than other candidates, as the next chair of the U.S. central bank.

At the conclusion of its policy meeting on Wednesday, the Fed left interest rates unchanged, as expected, but further added to expectations for a December rate hike by highlighting "solid" economic growth and a strengthening labor market.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% at 94.55 by 06:15 a.m. ET (10:15 GMT).

The pound edged lower, with GBP/USD down 0.09% at 1.3222, even after data showed that the UK construction sector expanded more than expected in October.

Investors were cautious ahead of the Bank of England's policy meeting scheduled later in the day. The central bank was widely expected to raise interest rates for the first time in almost a decade.

The euro moved higher, with EUR/USD up 0.22 at 1.1644.

Elsewhere, the yen was steady, with USD/JPY at 114.09, while USD/CHF slid 0.34% to trade at 0.9999.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.34% at 0.7703 and with NZD/USD advancing 0.41% to 0.6915.

Earlier Thursday, the Australian Bureau of Statistics said the trade surplus widened to A$1.745 billion in September from A$0.873 billion in August. Analysts had expected the trade surplus to hit A$1.200 billion in September.

A separate report showed that Australia's building approvals increased 1.5% in September, beating expectations for a decline of 1.0% and after an uptick of 0.1% the previous month.

Meanwhile, USD/CAD edged 0.19% lower to 1.2841.

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