Investing.com - The dollar slipped lower against the other majors currencies on Thursday, as investors eyed the relase of U.S. data later in the day and as investors remained cautious ahead of Donald Trumps inauguration as U.S. President on Friday.
EUR/USD gained 0.30% to 1.0661, as markets were awaiting the European Central Bank’s interest rate decision due later in the day.
The greenback rallied late Wednesday after Federal Reserve Chair Janet Yellen said interest rates could be raised quickly this year.
Speaking at the Commonwealth Club in San Francisco, Ms. Yellen said that "waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road - either too much inflation, financial instability, or both."
Investors were also eyeing the release of U.S. housing sector and jobless claims data, as well as a manufacturing activity report from the Philadelphia area expected later Thursday, for furher indications on the strength of the economy.
Elsewhere, GBP/USD advanced 0.48% to 1.2315.
The pound surged 3.03% on Tuesday after British Prime Minister Theresa May confirmed that Britain will be leaving the single market when it exits the European Union, but would seek maximum access to it through a new trade agreement.
May also said the final Brexit deal will be put to parliament for a vote.
USD/JPY slipped 0.12% to 114.52, while USD/CHF edged down 0.18% to trade at 1.0056.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.69% at 0.7559 and with NZD/USD advancing 0.84% to 0.7182.
Earlier Thursday, the Australian Bureau of Statistics said the number of employed people rose by 13,500 in December, beating expectations for an increase of 10,000.
The number of employed people climbed 37,100 in November, down from a previously estimated gain of 39,100.
However, the report also showed that Australia’s unemployment rate ticked up to 5.8% in December from 5.7% in November. Analysts had expected an unchanged reading in December.
Meanwhile, USD/CAD held steady at 1.3280, the highest since January 11.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24% at 101.07.