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Dollar holds steady ahead of U.S. economic reports

Published 09/01/2016, 05:37 AM
Updated 09/01/2016, 05:37 AM
© Reuters.  Dollar little changed, near 3-week highs with data in focus

© Reuters. Dollar little changed, near 3-week highs with data in focus

Investing.com - The dollar held steady near three-week highs against the other major currencies on Thursday, as investors remained cautious ahead of a string of U.S. economic reports due later in the day and especially Friday’s nonfarm payrolls data.

EUR/USD slipped 0.13% to at 1.1142, just off Wednesday three-week low of 1.1121.

The greenback was still supported after upbeat U.S. jobs data on Wednesday added to expectations for an upcoming rate hike by the Federal Reserve.

Payroll processing firm ADP said nonfarm private employment rose by 177,000 last month, surpassing expectations for an increase of 175,000.

The data came a day after Fed Vice Chairman Stanley Fischer said the U.S. labor market is almost at full strength and the pace of interest rate increases will be data dependent.

GBP/USD climbed 0.82% to 1.3146, the highest since August 26 and almost a one-month peak.

The pound strengthened after data showed that U.K. manufacturing activity moved back into expansionary territory in August from what had been its worst level since early 2013.

Research group Markit said its U.K. manufacturing purchasing managers’ index rose to a 10-month high of 53.3 this month from a reading of 48.2 in July. Analysts had expected the index to rise to 49.0 in August.

USD/JPY edged up 0.11% to 103.54, while USD/CHF rose 0.12% to 0.9851.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.20% at 0.7534 and with NZD/USD gaining 0.26% to 0.7267.

The Australian Bureau of Statistics said retail sales were flat in the second quarter, compared to expectations for a 0.3% rise and after an uptick of 0.1% in the three months to March.

A separate report showed that private capital expenditure declined by 5.4% in the last quarter, exceeding expectations for a 4.2% drop and following a 5.2% slide in the first quarter.

However, the Australian dollar found some support after data showed that Chinese manufacturing activity swung into expansion territory this month, with the official manufacturing PMI at 50.4, up from 49.9 in July.

China is Australia’s biggest export partner.

Elsewhere, USD/CAD added 0.10% to trade at 1.3112, not far from Wednesday’s three-week high of 1.3147.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.05, just off Wednesday’s three-week high of 96.25.

Latest comments

HI!. The U.S. dollar index, It's strength against all other six countries major currencies is in supreme, dominant, peal and in commanding power now because of the three weeks high touched by US $.. Also in every article we reed till yesterday have the same words repeatedly that . " 3 US $ Touches three week high, 3 week high, high...........is demolished and terminated just an hour before to a bad bottom by declining -.40 or .40%.. . It heavily affected in Forex markets , commodity markets.. . Not only six major currencies but all currencies paired and crossed with US $ in Forex market gains hugely.. . SO FINALLY THE 3 WEEKS HIGH,,,,,,, BLA, BLA, BLA ENDS IN TRAGEDY FOR WHOM TRUST. RISE OF US $'S VALUE AND TRADE BASED ON THAT. EVEN FOR EXPERTS AND ANALYSTS TOO. NOT A FALL LIKE THIS. . . .
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