The dollar
was little changed against the other major currencies on Thursday, as investors
awaited the release of U.S. jobs data later in the day after the minutes of the
Federal Reserve’s most recent policy meeting put an end to near-term rate hike
speculation.
GBP/USD gained
0.43% to 1.2985, off the previous session’s fresh 31-year lows of 1.2797.
The pound
bounced back up after the U.K. Office for National Statistics said on Thursday
that manufacturing production decreased by 0.5% in May, better than
expectations for a decline of 1.0%.
On an
annualized basis, manufacturing production rose at rate of 1.7%,
better than forecasts for a 0.7% increase.
The report
also showed that industrial production decreased by 0.5%, better than
forecasts for a 1.0% decline. Year-on-year, industrial production increased
1.4% in May, exceeding expectations for a 0.5% rise.
The pound
had dropped to fresh 31-year lows against the greenback on Wednesday, as
Britain’s shock decision to leave the European Union continued to fuel
uncertainty over the consequences of the U.K. vote on the country’s economy.
Investors
were now looking ahead to the Bank of England’s policy meeting next week, after
BoE Governor Mark Carney signaled last week that more stimulus may be needed
over the summer, sparking expectations for an upcoming rate cut.
Meanwhile,
the sentiment on the greenback mildly weakened after the minutes of the
Fed’s June policy meeting released on Wednesday showed that policymakers
decided to keep interest rate hikes on hold as they assessed the Brexit impact.
Fed
officials agreed that it was “prudent to wait” for additional data before
considering another rate hike, according to minutes.
EUR/USD slipped
0.14% to 1.1083, while EUR/GBP dropped 0.54% to trade at 0.8539, off
Wednesday’s a 35-month high of 0.8628.
Market
participants were also eyeing the minutes of the European Central Bank’s latest
policy meeting, due later in the session for potential hints on the central
bank’s post-Brexit policy moves.
USD/JPY slid
0.38% to 100.94, while USD/CHF added 0.19% to 0.9768.
Earlier
Thursday, Bank of Japan Governor Haruhiko Kuroda said the central
bank was ready to expand monetary stimulus further if needed to achieve its 2%
inflation target and affirmed his confidence over Japan's recovery prospects,
making no mention of the current Brexit turmoil.
The
Australian dollar was steady, with AUD/USD at 0.7526,
while NZD/USD rallied 1.21% to 0.7218.
Investors
remained cautious with the Aussie after Standard and Poor's downgraded the
outlook on Australia's AAA credit rating from stable to negative earlier
Thursday.
The ratings
agency cited political uncertainty following last Saturday's inconclusive
elections as a possible threat to Australia's rating in the future.
Elsewhere, USD/CAD edged
down 0.19% to trade at 1.2936.
The U.S.
dollar index, which measures the greenback’s strength against a trade-weighted
basket of six major currencies, was steady at 96.10.
Technical
Aspect
Dollar index
has support at 95.20 and resistance at 96.70
Close and sustain below 95.20 will take it to 94.50--94.00 and then to 93.60 else could test its resistance level of 96.70.
Further upside rally can be seen if closes above 96.70.
Close and sustain below 95.20 will take it to 94.50--94.00 and then to 93.60 else could test its resistance level of 96.70.
Further upside rally can be seen if closes above 96.70.
Trade with
levels only !!
