Investing.com - The dollar was trading in a narrow range against the other major currencies on Wednesday, as expectations that the Federal Reserve will soon start to phase out stimulus supported the greenback but tensions over Syria weighed on market sentiment.
During European morning trade, the dollar was steady close to six-week highs against the euro, with EUR/USD inching up 0.03% to 1.3174.
Data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August. The upbeat data added to expectations that the U.S. central bank could start to unwind its asset purchase program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report, which is seen as central to the Fed’s decision on tapering.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
Meanwhile, concerns over possible U.S. military strikes against Syria weighed on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention.
The dollar was little changed close to one-month highs against the yen, with USD/JPY edging up 0.02% to 99.57.
The dollar edged lower against the pound, with GBP/USD inching up 0.08% to 1.5570.
The dollar was fractionally higher against the Swiss franc, with USD/CHF edging up 0.04% to 0.9368.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.71% to 0.9124, NZD/USD rising 0.59% to 0.7847 and USD/CAD edging down 0.07% to 1.0526.
The Australian dollar was boosted after data showed that the Australian economy grew 0.6% in the second quarter, in line with economists’ forecasts and expanded by a larger-than-forecast 2.6% on a year-over-year basis.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.02% to 82.40.
The euro zone was to release data on retail sales later Wednesday, while the U.S. was to publish a report on the trade balance.
During European morning trade, the dollar was steady close to six-week highs against the euro, with EUR/USD inching up 0.03% to 1.3174.
Data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August. The upbeat data added to expectations that the U.S. central bank could start to unwind its asset purchase program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report, which is seen as central to the Fed’s decision on tapering.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
Meanwhile, concerns over possible U.S. military strikes against Syria weighed on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention.
The dollar was little changed close to one-month highs against the yen, with USD/JPY edging up 0.02% to 99.57.
The dollar edged lower against the pound, with GBP/USD inching up 0.08% to 1.5570.
The dollar was fractionally higher against the Swiss franc, with USD/CHF edging up 0.04% to 0.9368.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.71% to 0.9124, NZD/USD rising 0.59% to 0.7847 and USD/CAD edging down 0.07% to 1.0526.
The Australian dollar was boosted after data showed that the Australian economy grew 0.6% in the second quarter, in line with economists’ forecasts and expanded by a larger-than-forecast 2.6% on a year-over-year basis.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.02% to 82.40.
The euro zone was to release data on retail sales later Wednesday, while the U.S. was to publish a report on the trade balance.