Investing.com - The dollar edged higher against the other major currencies on Friday, but gains were expected to remain limited as investors became cautious ahead of U.S. data due later in the day and especially the Federal Reserve’s policy meeting next week.
EUR/USD edged down 0.12% to 1.1230.
The Commerce Department reported on Thursday that U.S. retail sales fell 0.3% in August, worse than expectations for a 0.1% decline. It was the first decline in five months.
In a separate report, the Department of Labor said initial jobless claims rose less than expected last week, pointing to further tightening in the labor market. But the Labor Department also reported that U.S. producer prices were flat in August.
The data indicated that the Fed is likely to leave interest rates unchanged at its next meeting, which is scheduled for September 20-21.
Market participants were looking ahead to upcoming reports on U.S. consumer price inflation and consumer sentiment, due later in the day for further indications on the strength of the economy.
GBP/USD fell 0.32% to 1.3199.
The pound remained under pressure after the Bank of England kept monetary policy on hold on Thursday, but indicated that it could cut interest rates again as soon as November unless the economy picks up.
USD/JPY held steady at 102.03, while USD/CHF rose 0.20% to trade at 0.9737.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.20% at 0.7504 and with NZD/USD slipping 0.10% to 0.7306.
Elsewhere, USD/CAD was little changed at 1.3164, off the previous session’s six-week high of 1.3236.
The commodity currencies were hit by tumbling oil prices amid concerns rising Libyan and Nigerian exports would add to a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 95.40.