Investing.com - The dollar edged higher against other major currencies on Thursday, but it was still within close distance of a seven-month trough as investors remained cautious ahead of three potential major market movers scheduled throughout the day.
EUR/USD eased 0.09% to 1.1246.
Sentiment on the greenback was still vulnerable ahead of former FBI Director James Comey's testimony to a Senate committee later Thursday.
Investors are fearful that the Trump administration may be further damaged by any revelations that could emerge when Comey testifies about Russia’s alleged involvement in the U.S. election.
Meanwhile, the ECB is not expected to make any changes to monetary policy, but traders will be watching President Mario Draghi’s statements for his assessment of the euro area economy.
The euro had weakened on Wednesday following reports that the ECB could cut inflation forecasts for the next three years. The report came after Draghi said last week that inflation remains subdued and still requires substantial stimulus.
GBP/USD was little changed at 1.2961.
Polls on the eve of the U.K. election indicated that Prime Minister Theresa May will win the vote and increase her parliamentary majority.
USD/JPY edged 0.09% higher to 109.93, while USD/CHF added 0.11% to trade at 0.9664.
The Australian dollar was steady, with AUD/USD at 0.7550, while NZD/USD rose 0.17% to 0.7207.
The Australian Bureau of Statistics earlier reported that the trade surplus narrowed to A$0.555 billion in April from A$3.169 billion in March, whose figure was revised from a previously estimated surplus of A$3.107 billion.
Analysts had expected the trade surplus to narrow to A$1.950 billion in April.
A separate report showed that China’s exports rose by an annualized rate of 8.7% in May, exceeding expectations for a 7.0% climb, while imports jumped 14.8%, blowing past projections for an increase of 8.5%.
China is Australia’s biggest export partner.
Meanwhile, USD/CAD held steady at 1.3504.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09% at 96.75, still close to Wednesday’s fresh seven-month lows of 96.45.