Forex - Dollar steady against euro, yen, ECB ahead
Investing.com
Published Sep 03, 2015 03:36AM ET
Dollar steady against euro, yen as sentimet recovers
Investing.com - The dollar was steady against the euro and the yen on Thursday as calm returned to global equity markets after recent selloffs trigged by fears over the impact of slowing growth in China on the global economy.
EUR/USD was trading at 1.1232, little changed for the day after ending the previous session down 0.82%.
The dollar remained supported following strong overnight gains on the back of a rally in Wall Street.
Japan’s Nikkei ended higher on Thursday as overnight gains on Wall Street and a market holiday in China supported risk appetite.
USD/JPY was last at 120.37, after rising to overnight highs of 120.69.
The dollar’s gains were held in check ahead of Friday’s U.S. jobs report for August, which investors hoped would provide clarity on the likelihood of a near-term interest rate hike by the Federal Reserve.
Recent turmoil in global financial markets has raised doubts over whether the Fed will hold off hiking interest rates from record lows at its upcoming policy meeting on September 17.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was firm at three-day highs of 95.92.
The worsening outlook for global growth had boosted demand for the low yielding euro and yen in recent sessions.
Investors often use low-yielding currencies to fund positions in higher-yielding currencies and equities, known as carry trades.
Investors were looking ahead to the European Central Bank’s policy meeting later Thursday, with the bank expected to cut its inflation forecast due to ongoing falls in oil prices and slowing growth in China.
The bank was expected to keep interest rates unchanged.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.