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Dollar holds steady ahead of U.S. data, Fed minutes

Published 02/17/2016, 06:04 AM
© Reuters.  Dollar little changed vs. rivals, U.S. data ahead
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Investing.com - The dollar held steady against the other major currencies on Wednesday, as investors remained cautious ahead of a string of U.S. economic reports and the minutes of the Federal Reserve’s most recent policy meeting.

USD/JPY was little changed at 114.09.

Investors were turning their attention to U.S. data on building permits, producer prices and industrial production, due later in the day, for further indications on the strength of the economy.

Market participants were also eyeing the Fed’s February policy meeting for hints on the timing of future interest rate hikes.

Meanwhile, oil prices rebounded slightly as OPEC members were to travel to Tehran on Wednesday in an attempt to convince Iran to join an oil production freeze deal.

EUR/USD edged down 0.09% to trade at 1.1132.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4302 and was higher against the Swiss franc, with USD/CHF rising 0.24% to 0.9909.

The U.K. Office for National Statistics reported on Wednesday that the unemployment rate held at 10-year low of 5.1% in the three months to December, disappointing expectations for a drop to 5.0%.

The claimant count fell by 14,800 in January, compared to expectations for a decrease of 3,000 people, and following a drop of 15,200 a month earlier, whose figure was revised from a previously reported decline of 4,300.

Meanwhile, the average earnings index, including bonuses, rose by 1.9% in the three months to December, matching forecasts and after increasing by 2.1% in the three months to November.

Excluding bonuses, wages rose by 2.0%, above expectations for 1.8% and following a 1.9% increase in the three months to November.

Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.25% at 0.7130 and with NZD/USD gaining 0.24% to 0.6595.

USD/CAD fell 0.17% to trade at 1.3840, as the rebound in oil prices lent support to the commodity-related loonie.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.95.

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