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Dollar slips lower as markets prepare for Yellen remarks

Published 08/25/2016, 05:30 AM
© Reuters.  Dollar edges lower against rivals with focus on Yellen
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Investing.com - The dollar slipped lower against the other major currencies on Thursday, as investors grew more and more cautious ahead of Federal Reserve Chair Janet Yellen’s highly-awaited speech on Friday.

EUR/USD rose 0.21% to 1.1288.

Markets shrugged off earlier data showing that the German Ifo Business Climate Index fell to 106.2 this month from a reading of 108.3 in July, missing forecasts for a rise to 108.5.

The greenback remained under pressure as market participants were waiting to see if Yellen will restate the hawkish view of the economy expressed by Fed officials last week or echo the minutes of the Fed’s July meeting, which indicated that officials are divided on when to raise rates.

Investors were also looking ahead to reports on U.S. jobless claims and durables goods orders, due later Thursday, for further indications on the strength of the economy.

GBP/USD eased 0.08% to 1.3223, close to the previous session’s three-week high of 1.3191.

USD/JPY held steady at 100.39, while USD/CHF fell 0.23% to 0.9647.

The Australian and New Zealand dollars were higher, with AUD/USD up 0.16% at 0.7625 and with NZD/USD adding 0.08% to 0.7318.

Elsewhere, USD/CAD edged down 0.12% to trade at 1.2908.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 94.61.

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