Forex - Dollar little changed after U.S. Q2 GDP revised up

Published 08/29/2012, 08:43 AM
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Investing.com - The U.S. dollar remained rangebound against the other major currencies on Wednesday, after data showing the U.S. economy grew slightly faster than initially estimated in the second quarter, as investors awaited a speech by Federal Reserve Chairman Ben Bernanke on Friday.

During European afternoon trade, the dollar was little changed against the euro, with EUR/USD dipping 0.02% to 1.2561.

The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.

Investors remained cautious ahead of a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.

Demand for the single currency continued to be underpinned by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

The greenback was slightly lower against the pound, with GBP/USD easing up 0.19% to 1.5845.

The outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.

Elsewhere, the greenback edged higher against the yen and was almost unchanged against the Swiss franc, with USD/JPY rising 0.18% to 78.64 and USD/CHF inching up 0.05% to trade at 0.9563.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.10% to 0.9872, AUD/USD adding 0.18% to trade at 1.0394 and NZD/USD edging up 0.09% to 0.8052.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to 81.39.

Later in the day, the U.S. was to release an industry report on pending home sales.



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