Investing.com - The U.S. dollar slipped lower against other major counterparts on Friday, erasing gains posted after the previous session's upbeat U.S. data, as investors remained cautious ahead of a highly-anticipated U.S. inflation report due later in the day.
The greenback was boosted after the U.S. Department of Labor reported on Thursday that initial jobless claims fell more than expected to 243,000 last week.
A separate report showed that producer prices increased 0.4% in September, in line with expectations. Core producer prices, which exclude food and energy also rose 0.4%, beating expectations for a 0.2% uptick.
Several policymakers believe additional tightening will depend on upcoming inflation data. However, most Fed members said they feel another rate increase this year "was likely to be warranted," the report showed.
Market participants were looking ahead to the highly-anticipated U.S. consumer price inflation data set to be released later Friday.
Sterling remained under pressure after European Union chief negotiator Michel Barnier announced on Thursday that Brexit talks were at an "impasse."
The euro remained mildly supported as Catalonia stopped short of formally declaring independence from Spain this week.
However, European Central Bank President Mario Draghi reiterated in a speech on Thursday that the ECB's asset purchases would continue until officials see a sustained improvement in the outlook for inflation.
Draghi added that interest rates would remain at current levels "well past" the time the central bank stops buying assets.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.22% at 0.7837 and with NZD/USD adding 0.13% to trade at 0.7135 after data earlier showed that China's imports increased by 18.7% last month, beating expectations, while exports rose less than expected by 8.1%.
China is Australia's biggest export partner and New Zealand's second biggest export partner.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 92.81 by 02:20 a.m. ET (06:20 GMT), re-approaching the previous session's two-week trough of 92.64.
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