Investing.com - The dollar edged lower against the other major currencies in subdued trade on Friday, as no major U.S. economic data was to be released throughout the day and as lower expectations for a 2016 U.S. rate hike continued to dampen demand for the greenback.
EUR/USD eased up 0.12% to 1.1272, off the previous session’s more than one-week highs of 1.1328.
The single currency strengthened after ECB President Mario Draghi said on Thursday that the current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.
The comments came after the central bank left its benchmark interest rate at a record-low 0.0%, in line with market expectations.
The ECB also raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6%.
Meanwhile, sentiment on the dollar remained vulnerable expectations for an upcoming rate hike by the Federal Reserve were crushed by the latest U.S. nonfarm payrolls report.
Investors shrugged off data on Thursday showing that U.S. initial jobless claims in the week ending September 3 decreased by 4,000 to a six-week low of 259,000 from the previous week’s total of 263,000. Analysts expected jobless claims to rise by 2,000 to 265,000 last week.
GBP/USD was little changed at 1.3300.
The U.K. Office for National Statistics reported on Friday that the goods trade deficit narrowed to £11.76 billion in July from £12.92 billion in June, whose figure was revised from a previously estimated deficit of £12.41 billion.
Analysts had expected the trade deficit to narrow to £11.75 billion.
USD/JPY fell 0.35% to 102.12, while USD/CHF held steady at 0.9732.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.38% at 0.7613 and with NZD/USD sliding 0.35% to 0.7373.
Elsewhere, USD/CAD was little changed at 1.2942, the highest since September 5.
The commodity currencies were hit by a drop in oil prices on Friday, as investors locked in profits from the previous session’s surge sparked by data showing that U.S. crude supplies fell by the most since April 1985 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.12% at 94.93.