iFOREX Daily Analysis : September 11, 2015

 | Sep 11, 2015 04:14AM ET

The dollar slipped lower against the other major currencies on Thursday amid ongoing uncertainty over whether the Federal Reserve will hike rates this month following the release of weak U.S. inflation data.

The Labor Department said U.S. import prices declined 1.8% last month, as the cost of petroleum and a range of goods fell. It was the largest decline in seven months.

In a separate report, the Labor Department said the number of individuals filing for initial jobless benefits last week fell by 6,000 to 275,000 from the previous week’s revised total of 281,000, remaining in territory consistent with a strengthening labor market.

Now the FOMC is keeping a close eye on temporary headwinds restraining inflation as it decides whether to raise its benchmark Federal Funds Rate at next week's two-day meeting, which concludes on Thursday. Nearly a decade has passed since the FOMC has lifted the rate, which has remained at its current level between zero and 0.25% since December 2008.

Many investors worry that an imminent rate hike will place undue downward pressure on long-term inflation, which has remained under the Fed's targeted goal of 2% for every month over the last three years.

EUR/USD

EUR/USD rose considerably on Thursday, for its sixth straight winning session, as disappointing U.S. import-export data added further confusion as to whether the Federal Reserve will raise interest rates later next week.

The euro ended the day at its highest closing level against the dollar in more than a week, and has gained nearly 3% in value over the last month of trading. While the euro's daily gains versus its American counterpart during the recent streak have been modest, Thursday's move marked the pair's sharpest appreciation over the period.

Today major focus will be on: European Union finance minister’s talks in Brussels and US data on producer prices and consumer sentiment.