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Dollar index turns lower, re-approaches 6-week trough

Investing.com -

Investing.com - The dollar turned lower against the other majors currencies on Wednesday, re-approaching the previous session's six-week low and concerns over Donald Trump's future policies persisted.

EUR/USD edged up 0.11% to 1.0742, not far from Tuesday's six-week peak of 1.0775.

Sentiment on the greenback was still vulnerable after Donald Trump on Monday formally withdrew the U.S. from the Trans-Pacific Partnership trade accord, distancing America from its Asian allies.

He has also said he intends to renegotiate the North American Free Trade Agreement between the U.S., Canada and Mexico, in order to better serve U.S. interests.

The euro's gains were limited however, as data on Wednesday showed that the German Ifo business climate index fell to 109.8 this month from a reading of 111.0 in December, missing forecasts for a rise to 111.3.

Elsewhere, GBP/USD gained 0.49% to 1.2582, the highest since December 14.

Investors were also digesting the U.K. Supreme Court ruling on Tuesday that British Prime Minister Theresa May must seek parliamentary approval before triggering the process to exit the European Union.

However, the pound recovered from initial losses posted immediately after the decision, as the government will not have to consult the devolved parliaments of Scotland, Wales or Northern Ireland, removing a possible hurdle to Brexit.

USD/JPY slipped 0.11% to 113.67, while USD/CHF edged down 0.18% to trade at 0.9989.

The Australian dollar was weaker, with AUD/USD down 0.55% at 0.7540, while NZD/USD held steady at 0.7245.

Earlier Wednesday, the Australian Bureau of Statistics reported that the consumer price index rose 0.5% in the fourth quarter of 2016, disappointing expectations for an increase of 0.7%.

Year-on-year, consumer prices gained 1.5% in the last quarter, less than the expected 1.6% rise.

Meanwhile, USD/CAD fell 0.18% to trade 1.3135.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.18% at 100.09, moving closer to Tuesday's six-week low of 99.89.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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