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Forex - Dollar Ticks Up Against Euro, Pound; ECB, BoE in Focus

Published 13/09/2018, 05:53 pm
Dollar Ticks Up Against Euro, Pound
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Investing.com - The dollar ticked higher against the euro and the British pound on Thursday, as investors looked ahead to policy decisions by the European Central Bank and the Bank of England later in the day.

The euro dipped 0.1% to 1.1620, while the pound slipped modestly to 1.3040 by 3:50AM ET (08:50GMT).

The ECB is all but certain to keep policy unaltered, making only nuanced changes to its guidance to stay on course to end bond purchases this year and raise interest rates next autumn.

The BoE is also expected to hold fire after raising interest rates last month with market expectations of another rate hike only seen in the second half of next year.

Perhaps attracting more attention is a policy meeting by the Turkish central bank, which is expected to raise interest rates to shore up its battered lira.

The lira traded at 6.3700 per dollar, up about 0.5%. It had slumped to a record low 7.2400 in mid-August.

Meanwhile, against a currency basket, the dollar inched up 0.1% to 94.91 ahead of the release of U.S. consumer price index data due later on Thursday.

The CPI data comes after soft U.S. wholesale price data undermined the case for a faster pace of policy tightening by the Federal Reserve.

The U.S. central bank is widely expected to raise benchmark interest rates at its September meeting, but odds for another move in December have decreased in recent days.

Meanwhile, investors remained focused on the U.S.- China trade dispute following news that the Trump administration has invited Chinese officials to restart trade talks, which raised hopes for a deal easing the bitter tariff dispute between the world's two biggest economies.

China's yuan added 0.2% to 6.8481 per dollar, pulling back from a 2-1/2-week low of 6.8801 brushed the previous day.

The Australian dollar, seen as a proxy for global growth due to the nation's significant trade exposure to China, was up 0.3% at 0.7190.

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