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Dollar index moves higher ahead of U.S. data

Published 08/11/2016, 05:37 AM
© Reuters.  Dollar gains some ground before more U.S. economic reports
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Investing.com - The dollar moved higher against the other major currencies on Thursday, pulling away from the previous session’s one-week trough as investors turned their attention to upcoming U.S. data.

EUR/USD slid 0.28% to 1.1148.

Market participants were eyeing the U.S. jobless claims report due later in the day, as well as Friday’s U.S. retail sales data for further indications on the strength of the economy after weak data published earlier in the week dampened expectations for a 2016 rate hike by the Federal Reserve.

The greenback had weakened broadly after data on Tuesday showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise.

GBP/USD declined 0.37% to a one-month low of 1.2963.

The pound remained under selling pressure after the Bank of England missed its target in a new bond buying program aimed at bolstering the economy on Tuesday.

The BoE fell £52m short of its £1.17 billion target when it failed to find enough sellers.

The bank said Wednesday it would delay making up the shortfall for three to six months.

USD/JPY was little changed at 101.37, while USD/CHF held steady at 0.9754.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.12% at 0.7715 and with NZD/USD advancing 0.46% to 0.7245.

The kiwi strengthened despite the Reserve Bank of New Zealand’s decision to lower its benchmark interest rate to 2.00% from 2.25% at the conclusion of its policy meeting on Thursday, in a widely expected move.

Commenting on the move, RBNZ Govenor Graeme Wheeler said "the high exchange rate is adding further pressure to the export and import competing sectors."

"This makes it difficult for the bank to meet its inflation objective," he added.

Elsewhere, USD/CAD eased 0.08% to trade at 1.3047.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.20% at 95.78, off Wednesday’s one-week low of 95.38.

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