Investing.com - The dollar was mixed against the other major
currencies in subdued trade on Thursday, as markets were eyeing the
release of U.S. economic growth data later in the day amid ongoing
speculation over the future of the Federal Reserve's stimulus
During European morning trade, the dollar was higher against the
yen, with USD/JPY up 0.34% to 98.77.
Investors were eyeing the final reading of U.S. second quarter
gross domestic product due later in the day, after a recent string
of economic reports underlined concerns over the outlook for the
U.S. economic recovery.
Stronger-than-expected GDP data would likely fuel speculation that
the Fed could announce a stimulus reduction before the year end.
Last week, the Fed said it wanted to see more evidence of a
sustained economic recovery before it reduced stimulus.
Separately, U.S. budget concerns weighed on sentiment as Republican
leaders in the U.S. House of Representatives notified members that
a vote on raison the debt limit could come as early as Friday.
Elsewhere, the euro slipped lower against the dollar, with EUR/USD
falling 0.14% to 1.3508.
The single currency remained mildly supported after data on
Wednesday showed that German consumer confidence is seen rising to
the highest level since June 2007 in October.
The forward looking GfK index of German consumer confidence rose to
7.1, and this month's reading was revised up from 6.9 to 7.
The dollar was higher against the pound and the Swiss franc, with
GBP/USD shedding 0.21% to 1.6048 and USD/CHF edging up 0.10% to
trade at 0.9101.
Official data earlier showed that U.K. GDP expanded by 0.7% in the
second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June,
compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit
narrowed less-than-expected in the last quarter, improving to GBP13
billion from a deficit of GBP21.8 billion in the three months to
Analysts had expected the current account deficit to narrow to
GBP12 billion in the second quarter.
Elsewhere, the greenback was broadly lower against its Australian,
New Zealand and Canadian counterparts, with AUD/USD gaining 0.33%
to 0.9398, NZD/USD climbing 0.61% to 0.8291 and USD/CAD dipping
0.05% to 1.0309.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was up 0.13% to
Later in the day, the U.S. was to release the weekly report on
initial jobless claims, as well as final data on second quarter
growth and private sector data on pending home sales.
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