Dollar slips lower as focus turns to Yellen : 23.08.2016
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The dollar slipped lower against the other major currencies on Tuesday, as investors became more cautious ahead of Friday's speech y Federal Reserve Chair Janet Yellen.
Market participants are hoping Ms. Yellen will give further indications on the timing of future rate hikes.
The dollar moved broadly higher after San Francisco Federal Reserve President John Williams late last week signaled support for a September rate increase.
EUR/USD was up 0.11% at 1.1332, off session highs of 1.1355 after research group Markit reported that Germany's manufacturing purchasing managers' index slipped to a two-month low of 53.6 in August from 53.8 the previous month, confounding expectations for a slip to 53.5.
Germany's services PMI fell to a 15-month low of 53.3 this month from 54.4 in July, compared to expectations for an unchanged reading.
Markit also said that the French manufacturing PMI ticked down to 48.5 in August from 48.6 last month, compared to expectations for a rise to 48.8.
The French services PMI rose to 52.0 this month from 50.5 in July, beating expectations for an unchanged reading. For the entire euro zone, the composite PMI, which measures the combined output of both the manufacturing and service sectors ticked up to 53.3 in August from 53.2 in July, compared to expectations for a slip to 53.1. GBP/USD gained 0.36% to traede at 1.3181. USD/JPY slipped 0.15% to 100.17, while USD/CHF eased 0.09% to 0.9616.
However, sentiment on the yen remained fragile after Bank of Japan Governor Haruhiko Kuroda said over the weekend that there is a 'sufficient chance' the central bank will implement additional easing measures at next month's policy meeting.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.28% at 0.7641 and with NZD/USD advancing 0.71% to 0.7324.
The New Zealand dollar strengthened after Reserve Bank of New Zealand Governor Wheeler said the bank's current interest rate policy involves further monetary easing measures but he said he did not see the need for a rapid series of rate cuts.
Elsewhere, USD/CAD shed 0.26% to 1.2912. The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.17% at 94.36.
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Market participants are hoping Ms. Yellen will give further indications on the timing of future rate hikes.
The dollar moved broadly higher after San Francisco Federal Reserve President John Williams late last week signaled support for a September rate increase.
EUR/USD was up 0.11% at 1.1332, off session highs of 1.1355 after research group Markit reported that Germany's manufacturing purchasing managers' index slipped to a two-month low of 53.6 in August from 53.8 the previous month, confounding expectations for a slip to 53.5.
Germany's services PMI fell to a 15-month low of 53.3 this month from 54.4 in July, compared to expectations for an unchanged reading.
Markit also said that the French manufacturing PMI ticked down to 48.5 in August from 48.6 last month, compared to expectations for a rise to 48.8.
The French services PMI rose to 52.0 this month from 50.5 in July, beating expectations for an unchanged reading. For the entire euro zone, the composite PMI, which measures the combined output of both the manufacturing and service sectors ticked up to 53.3 in August from 53.2 in July, compared to expectations for a slip to 53.1. GBP/USD gained 0.36% to traede at 1.3181. USD/JPY slipped 0.15% to 100.17, while USD/CHF eased 0.09% to 0.9616.
However, sentiment on the yen remained fragile after Bank of Japan Governor Haruhiko Kuroda said over the weekend that there is a 'sufficient chance' the central bank will implement additional easing measures at next month's policy meeting.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.28% at 0.7641 and with NZD/USD advancing 0.71% to 0.7324.
The New Zealand dollar strengthened after Reserve Bank of New Zealand Governor Wheeler said the bank's current interest rate policy involves further monetary easing measures but he said he did not see the need for a rapid series of rate cuts.
Elsewhere, USD/CAD shed 0.26% to 1.2912. The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.17% at 94.36.