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Dollar holds steady vs. rivals, Fed minutes on tap

Published 02/17/2016, 10:54 AM
Dollar little changed as investors await Fed meeting minutes
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Investing.com - The dollar held steady against the other major currencies on Wednesday, after the release of mixed U.S. economic reports as markets turned their attention to the minutes of the Federal Reserve’s most recent policy meeting due later in the day.

USD/JPY rose 0.30% to 114.41.

The Federal Reserve said that industrial production increased by 0.9% last month, beating expectations for a gain of 0.4%.

Earlier Wednesday, the U.S. Commerce Department said that housing starts fell 3.8% to hit 1.099 million units last month from December’s total of 1.143 million units. Analysts had expected a rise 2.5% to 1.170 million.

Meanwhile, the number of building permits issued declined 0.2% to 1.202 million units from 1.204 million. Economists had forecast a drop of 0.1% to 1.200 million units in January.

A separate report showed that U.S. producer prices inched up 0.1% last month, though the forecast was for a drop of 0.2% and after a 0.2% decline in December.

Year-over-year, the producer price index declined 0.2%, compared to expectations for a 0.2% fall.

The core producer price index moved up by 0.4% in January, above forecasts for a gain of 0.1%.

EUR/USD edged down 0.14% to trade at 1.1128.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4297 and was higher against the Swiss franc, with USD/CHF gaining 0.39% to 0.9926.

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 revised drop of 15,200 a month earlier.

Meanwhile, the average earnings index, including bonuses, rose by 1.9% in the three months to December, matching forecasts. Excluding bonuses, wages rose by 2.0%, above expectations for 1.8%.

Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.45% at 0.7143 and with NZD/USD advancing 0.36% to 0.6603.

USD/CAD retreated 0.83% to trade at 1.3750, as a 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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