Dollar edges higher in cautious trade, BoE in focus Forex : 04.08.2016
Dollar gains some ground vs. other majors in cautious trade© Reuters. Dollar gains some ground vs. other majors in cautious trade
The dollar edged higher against the other major currencies on Thursday, as investors remained cautious before the Bank of England’s policy decision due later in the day.
USD/JPY edged up 0.12% to trade at 101.37, off Tuesday’s three-week low of 100.65.
The dollar remained mildly supported after payroll processor ADP said on Wednesday that the U.S. private sector added 179,000 jobs last month, surpassing expectations for an increase of 170,000.
The economy created 176,000 jobs in June, whose figure was revised from a previously reported increase of 172,000, While not viewed as a reliable guide for the government jobs report due on Friday, August 5, it does give guidance on private-sector hiring.
The dollar has come under pressure amid diminished expectations for another rate hike by the Federal Reserve this year after last week’s surprisingly weak data on U.S. second quarter growth.
GBP/USD fell 0.23% to trade at 1.3290.
The BoE was expected to lower interest rates by 25 basis points later Thursday, as a string of downbeat economic reports from the U.K. recently sparked concerns over the outlook for growth.
The euro was also lower, with EUR/USD down 0.18% at 1.1129, while USD/CHF edged up 0.18% to 0.9747.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.32% at 0.7613 and with NZD/USD adding 0.13% to 0.7168.
The Australian Bureau of Statistics earlier said that retail sales ticked up 0.1% in June, disappointing expectations for a 0.4% rise, after a 0.2% gain. On a quarterly basis, retail sales increased by 0.4% in the three months to June, below expectations for a 0.5% rise. Elsewhere, USD/CAD eased up 0.09% to 1.3078.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 95.64, pulling further away from Tuesday’s six-week lows of 94.94.
International Forex Trend Update
04-08-2016 17:40
| EURUSD | : | Trend | - | Down |
| GBPUSD | : | Trend | - | Down |
| USDCHF | : | Trend | - | Down |
| USDCAD | : | Trend | - | Down |
| AUDUSD | : | Trend | - | UP |
| EURGBP | : | Trend | - | Down |
| EURAUD | : | Trend | - | Down |
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