Investing.com - The dollar turned lower against other major currencies on Friday, as investors remained cautious ahead of a highly-anticipated vote on U.S. President Donald Trump’s healthcare bill and as strong euro zone data sent the single currency broadly higher.
EUR/USD was up 0.22% at 1.0807, off a three-day low of 1.0761 hit earlier in the session.
The single currency was boosted after market research group Markit said its flash euro zone composite purchasing managers’ index, which measures the combined output of both the manufacturing and service sectors, increased to a six-year high of 56.7 in March from 56.0 in February.
Analysts had expected the index to drop to 55.8 this month.
The report came shortly after data showed that German private sector growth hit its strongest level in nearly six years.
Meanwhile, sentiment on the dollar remained vulnerable after Trump warned House Republican lawmakers that he will leave Obamacare in place and move on to tax reform if they do not approve new healthcare legislation in a vote on Friday.
The healthcare vote is seen by investors as a test of his ability to implement key campaign promises such as tax reform and infrastructure spending.
Elsewhere, GBP/USD slipped 0.25% to 1.2490, off the previous session’s one-month peak of 1.2532.
The pound had strengthened broadly on Thursday thanks to a stronger than expected rise in U.K. retail sales last month.
USD/JPY held steady at 111.00, off Thursday’s four-month trough of 110.63, while USD/CHF fell 0.23% to 0.9910.The Australian and New Zealand dollars were weaker, with AUD/USD down 0.12% at 0.7618 and with NZD/USD shedding 0.21% to 0.7015.
Earlier Friday, Statistics New Zealand said the country’s trade deficit narrowed to NZ$18 million last month from NZ$257 million in January, whose figure was revised from a previously estimated deficit of NZ$285 million.
Analysts had expected the trade balance to swing into a surplus of NZ$160 million in February.
Meanwhile, USD/CAD eased up 0.08% to trade at 1.3363.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 99.46, off session highs of 99.81 and not far from Wednesday’s six-week trough of 99.34.