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Forex - Dollar edges higher as focus turns to U.S. politics

Published 03/23/2017, 06:24 AM
© Reuters.  Dollar regains some ground with eyes on U.S. healthcare bill
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Investing.com - The dollar edged higher against other major currencies on Thursday, as investors turned to fresh developments in U.S. politics amid ongoing uncertainty over Donald Trump’s ability to honor his campaign promises.

EUR/USD slipped 0.21% to 1.0772, pulling away from Wednesday’s six-week high of 1.0825.

Investors eyeing a key vote on U.S. President Donald Trump’s healthcare bill scheduled later in the day.

Market participants were especially concerned about Trump’s ability to gather enough support for his healthcare bill – set to replace Obamacare and one of his key campaign pledges.

Markets were also jittery after five people, including a police officer and one man believed to be the attacker, were killed on Wednesday in an attack that London police are calling a "terrorist incident."

The suspect mowed down pedestrians in a vehicle on Westminster Bridge before fatally stabbing the officer outside the Houses of Parliament and being shot and killed.

Elsewhere, GBP/USD edged up 0.12% to 1.2503, just off a one-month peak of 1.2528 hit earlier in the session after the U.K. Office for National Statistics said retail sales increased by 1.4% in February, compared to expectations for a 0.4% rise.

Year-on-year, retail sales climbed 3.7% last month, compared to forecasts for a 2.6% gain.

Core retail sales, which exclude automobile sales and fuel, increased by 1.3% in February, confounding expectations for a 0.4% rise.

USD/JPY slipped 0.10% to trade at 111.04, still close to a four-month low of 110.73 hit on Wednesday, while USD/CHF rose 0.27% to 0.9939.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.68% at 0.7625 and with NZD/USD shedding 0.16% to 0.7034.

Meanwhile, USD/CAD added 0.13% to trade at 1.3345.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.13% at 99.61, off the previous session’s six-week low of 99.34.

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