Forex - Dollar trims gains, holds steady vs. rivals
Investing.com
Published May 11, 2017 10:52AM ET
Dollar pulls back from session highs vs. other majors
Investing.com - The dollar trimmed gains and held steady against other major currencies on Thursday, after the release of upbeat U.S. economic reports, although expectations for June rate hike continued to support.
EUR/USD was almost unchanged at 1.0866.
The greenback initially strengthened after the U.S. Department of Labor said initial jobless claims in the week ending May 6 decreased by 2,000 to 236,000 from the previous week’s total of 245,000.
Analysts had expected jobless claims to rise by 7,000 to 245,000 last week.
Separately, the Commerce Department said producer prices increased by 0.5% last month, exceeding forecasts for a 0.2% rise. Year-over-year, producer prices rose 2.5% in April.
Core producer prices, which exclude food and energy, advanced by 0.4% in April, higher than forecasts for a gain of 0.2%.
The upbeat data added to expectations for a rate hike by the Federal Reserve next month.
GBP/USD declined 0.45% to 1.2883 after the Bank of England voted 7-1 to keep rates on hold at a record low of 0.25%, in line with economists’ expectations.
Earlier Thursday, the U.K. Office for National Statistics said manufacturing production fell 0.6% in March, compared to expectations for a 0.2% decline of 0.2%.
On an annualized basis, manufacturing production increased 2.3% in March, below forecasts for a 3.0% advance.
The report also showed that industrial production fell 0.5% in March, compared to forecasts for a 0.3% decrease.
USD/JPY retreated 0.59% to 113.62, while USD/CHF fell 0.22% to 1.0068.
The Australian dollar was steady, with AUD/USD at 0.7362, while NZD/USD declined 0.68% to trade at 0.6844.
The Reserve Bank of New Zealand held its benchmark interest rate at 1.75% on Thursday and indicated that a tightening of monetary policy was further away than markets had anticipated.
Meanwhile, USD/CAD advanced 0.42% to 1.3712.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 99.50, off a three-week high of 99.77 hit earlier in the day.
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Written By: Investing.com
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