Investing.com - The dollar moved lower against the other majors currencies on Wednesday, but the greenback remained broadly supported as investors eyed the European Central Bank’s policy meeting on Thursday and the highly-anticipated Federal Reserve policy decision due next week.
EUR/USD gained 0.41% to 1.0762.
Markets were still recovering after Italian voters rejected on Sunday constitutional changes backed by the government and the subsequent resignation of Prime Minister Matteo Renzi.
However there were indications that Italy would not hold early elections after Renzi’s resignation, with many analysts thinking it more likely that a caretaker government will be put in place until an election in 2018.
Meanwhile, the greenback remained broadly supported after Friday’s solid U.S. jobs report for November confirmed expectations for an interest rate hike by the Federal Reserve this month.
Elsewhere, GBP/USD declined 0.50% to trade at 1.2615 after data showed that U.K. manufacturing production fell 0.9% in October, disappointing expectations for a 0.2% rise and after a 0.6% increase the previous month.
Industrial production declined by 1.3% in October, also confounding expectations for an uptick of 0.2%.
The pound had rallied to nine-week highs on Tuesday after Chancellor Philip Hammond said the British government would not rule out the possibility of continuing to make payments into the European Union budget after Brexit in order to retain access to the single market.
USD/JPY slipped 0.27% to 113.71, while USD/CHF shedding 0.30% to 1.0075.
The Australian and New Zealand dollars were higher, with AUD/USD up 0.16% at 0.7472 and with NZD/USD climbing 0.52% to 0.7157.
Earlier Wednesday, the Australian Bureau of Statistics said the country’s gross domestic product fell 0.5% in the third quarter, confounding expectations for a 0.3% rise.
Year-on-year, Australia’s GDP increased by 1.8% in the three months to September, compared to expectations for a 2.5% rise.
Meanwhile, USD/CAD eased 0.08% to 1.3266 after the Bank of Canada said it was leaving its overnight cash rate unchanged at a record low 0.50%, where it has been since July 2015, in a widely expected move.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 100.25.