Investing.com - The U.S. dollar was broadly higher against most of its major counterparts on Thursday, as the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing in the U.S.
The greenback found further support as investors preferred to turn to the relative safety of the U.S. dollar ahead of data expected to show a deepening slowdown in Chinese economic growth.
During European morning trade, the dollar was up against the euro, with EUR/USD shedding 0.17% to hit 1.2221.
Sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, in the U.S., minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The greenback was also higher against the pound, with GBP/USD dipping 0.25% to hit 1.5464.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY shedding 0.53% to hit 79.33 and USD/CHF edging up 0.15% to hit 0.9824.
Earlier in the day, the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
While the central bank increased its asset-purchase program by JPY5 trillion to JPY45 trillion, it also cut its loan facility program by the same amount to JPY25 trillion.
The BoJ also kept its benchmark interest rate unchanged between zero and 0.1 percent and monthly bond purchases at JPY1.8 trillion.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.11% to hit 1.0216, AUD/USD falling 0.93% to hit 1.01566 and NZD/USD slumping 0.84% to hit 0.7897.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.1% to trade at 83.71.
Later in the day, the euro zone was to produce official data on industrial production, while the U.S. was to release government data on unemployment claims and official data on import prices.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
The greenback found further support as investors preferred to turn to the relative safety of the U.S. dollar ahead of data expected to show a deepening slowdown in Chinese economic growth.
During European morning trade, the dollar was up against the euro, with EUR/USD shedding 0.17% to hit 1.2221.
Sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, in the U.S., minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The greenback was also higher against the pound, with GBP/USD dipping 0.25% to hit 1.5464.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY shedding 0.53% to hit 79.33 and USD/CHF edging up 0.15% to hit 0.9824.
Earlier in the day, the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
While the central bank increased its asset-purchase program by JPY5 trillion to JPY45 trillion, it also cut its loan facility program by the same amount to JPY25 trillion.
The BoJ also kept its benchmark interest rate unchanged between zero and 0.1 percent and monthly bond purchases at JPY1.8 trillion.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.11% to hit 1.0216, AUD/USD falling 0.93% to hit 1.01566 and NZD/USD slumping 0.84% to hit 0.7897.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.1% to trade at 83.71.
Later in the day, the euro zone was to produce official data on industrial production, while the U.S. was to release government data on unemployment claims and official data on import prices.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.