Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

FOREX-Dollar steadies after Fed minutes as markets await more central bank cues

Published 06/07/2017, 10:47 am
Updated 06/07/2017, 10:50 am
FOREX-Dollar steadies after Fed minutes as markets await more central bank cues
EUR/USD
-
USD/JPY
-
AUD/USD
-
DX
-
HG
-
CL
-
DXY
-

* Dollar nudged off recent highs marked vs yen, euro

* US data like ISM non-manufacturing PMI awaited for cues

* Comments by Fed officials, ECB meeting minutes also in focus

* Aussie on defensive following drop by commodities

By Shinichi Saoshiro

TOKYO, July 6 (Reuters) - The dollar steadied against its peers early on Thursday after the Federal Reserve's policy meeting minutes took the wind out of its advance, with the market awaiting comments by central bankers and U.S. data for its next cues.

The dollar was little changed at 113.240 yen JPY= , pulling back from a seven-week high of 113.690 reached overnight.

The euro inched down 0.1 percent to $1.1339 EUR= following its decline to a one-week trough of $1.1313 on Wednesday.

The greenback had rallied earlier in the week after upbeat U.S. economic indicators lifted Treasury yields to multi-week highs.

But its advance stalled after the Fed's minutes on its June 13-14 policy meeting released on Wednesday showed a rift among policymakers over the pace of future U.S. rate increases and disappointed some dollar bulls. the Fed's meeting minutes sounded hawkish in my view, as the possibility was mentioned for the reduction of its balance sheet in the near-term. But the dollar still slipped, showing that it has become top-heavy," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

"The market has gotten used to the dollar strengthening this week. So even if upcoming indicators like the U.S. ISM report are in line with expectations, the dollar may drop on disappointment. The currency may need a strong upside data surprise to move further up."

U.S. data on tap later in the day include the ADP employment report, ISM non-manufacturing PMI and the initial jobless claims. ECONUS

Investors will also look to comments from San Francisco Fed President John Williams and Fed Board Governor Jerome Powell for their potential impact on U.S. yields.

For the euro and European bond markets, markets await the European Central Bank's June policy meeting minutes due later on Thursday. ECB executive board member Peter Praet is also scheduled to take part in a conference in Paris.

The dollar index against a basket of major currencies was flat at 96.296 .DXY .

The Australian dollar was 0.15 percent lower at $0.7591 AUD=D4 , with eyes on the country's trade balance for May due at 0130 GMT. ECONAU

The Aussie plumbed a nine-day low of $0.7570 overnight, dragged down by declines in prices of commodities like copper and crude oil.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.