The US dollar is stable on Thursday

01.09.2016

On Thursday, the dollar is stable near three-week highs against other major currencies, as investors remained cautious ahead of the US economic data reports later in the session and Friday's data on non-farm payrolls.

EUR/USD fell 0.13% to 1.1142, trading in close proximity to three-week low 1.1121 of Wednesday.

The US dollar got support after positive US data reinforced optimism about the US economy and increased expectations of a quick increase of the interest rate by Fed.

On Wednesday, ADP reported that the level of employment in the private sector rose by a seasonally adjusted 177 000 last month, surpassing expectations for an increase by 175 000.

GBP/USD rose 0.82% to 1.3146, the highest since 26 August.

The pound strengthened after data showed that manufacturing activity in the UK unexpectedly returned to the territory of the growth in August after reaching the worst level since the beginning of 2013 in the previous month.

Markit said that its index of business activity in the UK manufacturing sector (PMI) rose last month to a seasonally adjusted 10-month high of 53.3 from 48.2 in July.

USD/JPY pair rose 0.11% to 103.54, and USD/CHF rose 0.12% to 0.9851.

Australian and New Zealand dollars strengthened, AUD/USD pair rose 0.20% to 0.7534 and NZD/USD pair rose 0.26% to 0.7267.

Australian Bureau of Statistics reported that retail sales in the second quarter remained unchanged compared to expectations of growth by 0.3% after rising 0.1% in the three months to March.

A separate report showed that private capital expenditure decreased by 5.4% in the last quarter, exceeding expectations of a 4.2% decline after a 5.2% decline in the first quarter.

USD/CAD added 0.10% to 1.3112, trading near three-week high at 1.3147.

The USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, is stable at 96.05, trading near Wednesday’s three-week high at 96.25.

Back Next suggested article