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Dollar steady to lower vs. rivals, Fed minutes in focus

Posted: 7/8/2014 4:24:00 AM
Referenced Stocks: - - The dollar was steady to lower against the other major currencies on Tuesday, as sentiment on the greenback remained fragile ahead of the Federal Reserve's upcoming meeting minutes due on Wednesday.

The dollar was little changed against the euro, with EUR/USD down 0.07% to 1.3594.

The dollar found support last Thursday after a strong U.S. jobs report sparked speculation that the Fed could bring forward its timetable for raising interest rates.

The U.S. economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years.

But investors remained cautious amid expectations that the Fed will stick to its dovish stance on monetary policy amid concerns over ongoing slow growth in inflation and wages.

In the euro zone, official data earlier showed that Germay's trade surplus widened to €18.8 billion in May, from €17.2 billion in April whose figure was revised down from a previously estimated €17.7 billion. Analysts had expected the trade surplus to narrow to €16.4 billion in May.

The pound was steady against the dollar, with GBP/USD inching up 0.05% to 1.7136.

The dollar was fractionally lower against the yen, with USD/JPY down 0.09% to 101.77 and edged higher against the Swiss franc, with USD/CHF up 0.08% to 0.8943.

In Switzerland, official data showed that retail sales fell at an annual rate of 0.6% in May, compared to expectations for a 1.8% increase, after an upwardly revised 0.8% uptick the previous month.

A separate report showed that Swiss consumer price inflation slipped 0.1% last month, confounding expectations for an 0.1% uptick, after a 0.3% rise in May.

The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.28% to 0.9398, NZD/USD gaining 0.45% to 0.8797 and USD/CAD dipping 0.02% to 1.0681.

Earlier Tuesday, data showed that the NZIER business confidence index fell to 32 in the second quarter, from a reading of 52 in the three months to April.

Meanwhile, the National Australia Bank said its business confidence index ticked up to 8 in June, from a reading of 7 the previous month.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to 80.31. offers an extensive set of professional tools for the financial markets.
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