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Forex - Dollar index slips lower ahead of NFP report

Published 03/10/2017, 05:20 AM
Updated 03/10/2017, 05:20 AM
© Reuters.  Dollar moves slightly lower as markets gear up for U.S. data

© Reuters. Dollar moves slightly lower as markets gear up for U.S. data

Investing.com - The dollar slipped lower against other major currencies on Friday, as investors became more cautious ahead of the highly-anticipated U.S. nonfarm payrolls report due later in the day.

EUR/USD gained 0.32% to 1.0611.

Investors were looking ahead to Friday’s government employment report for February, where a strong reading would cement expectations for a rate hike from the Federal Reserve next week.

Meanwhile, the euro remained supported after European Central Bank President Mario Draghi struck a more upbeat tone on the outlook for the recovery in the euro zone on Thursday, while reiterating that the present monetary policy stance remains appropriate.

The comments came after the ECB kept interest rates unchanged at the outcome of its meeting earlier and reiterated they can be cut again in the future if necessary.

Elsewhere, GBP/USD was little changed at 1.2169, just off Thursday’s seven-week low of 1.2134.

The U.K. Office for National Statistics said manufacturing production fell 0.9% in January, worse than expectations for a drop of 0.6% and following a rise of 2.2% in the previous month.

On an annualized basis, manufacturing production increased at rate of 2.7% in January, below forecasts for a 3.0% advance.

On a more positive note, the U.K. trade deficit narrowed to £10.83 billion in January from £10.91 billion in December, whose figure was revised from a previously estimated deficit of £10.89 billion. Analysts had expected the trade deficit to widen to £11.05 billion in January.

Separately, U.K. Prime Minister Theresa May confirmed during a press conference in Brussels that Britain will start exit negotiations with the EU by the end of this month.

USD/JPY advanced 0.36% to trade at 115.37, the highest since January 19, while USD/CHF held steady at 1.0117.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.28% at 0.7527 and with NZD/USD rising 0.28% to 0.6919.

Meanwhile, USD/CAD slipped 0.14% to trade at 1.3491, pulling away from the previous session’s more than two-month peak of 1.3536.

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 101.81.

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