Forex - Dollar Holds onto Modest Gains, Fresh U.S. Data on Tap
The U.S. dollar held onto modest gains against other major currencies on Wednesday, as investors eyed the release of fresh U.S. economic reports following Tuesday's tepid inflation data and concerns surrounding new U.S. political turmoil.
Markets were jittery after U.S. President Donald Trump on Tuesday fired Secretary of State Rex Tillerson, considered more moderate in his administration. Tillerson will be replaced by CIA Director Mike Pompeo.
Investors also remained cautious after Trump announced plans to impose tariffs on up to $60 billion of Chinese imports, specifically targeting the technology and telecommunications sectors.
The dollar had already come under pressure after data on Thursday showed that U.S. consumer prices slowed last month, confirming that an anticipated pickup in inflation will probably be only gradual and easing concerns over a more aggressive interest rate policy by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.79 by 06:20 a.m. ET (10:20 GMT).
The euro was lower, with EUR/USD down 0.19% at 1.2367, while GBP/USD held steady at 1.3954.
The yen was almost unchanged, with USD/JPY at 106.52, while USD/CHF edged up 0.17% to 0.9456.
Elsewhere, the Australian dollar was stronger, with AUD/USD up 0.33% at 0.7886, while NZD/USD held steady at 0.7323.
Meanwhile, USD/CAD slipped 0.10% to trade at 1.2951.