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Dollar trims losses but remains under pressure ahead of Fed minutes

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Shutterstock photo - - The dollar trimmed losses against a basket of other major currencies on Wednesday, but was still under pressure as sentiment on the greenback remained fragile ahead of the minutes of the Federal Reserve's latest policy meeting.

Market participants were eyeing the Fed's upcoming meeting minutes for indications on the central bank's next policy moves after Friday's downbeat jobs data fuelled uncertainty over the timing of a rate hike.

The Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, less than half of February's gain and the smallest increase since December 2013.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.34% to 97.93.

EUR/USD was up 0.12% to 1.0827, pulling away from session highs of 1.0888.

The euro remained supported even as data showed that retail sales in the euro zone fell 0.2% in February, in line with market expectations. On a year-over-year basis, retail sales rose 3.0% also in line with forecasts.

The report said gasoline sales fell for the first time since September, indicating that the boost to consumer spending from lower oil prices may be waning.

A separate report showed that German factory orders fell 0.9% in February, disappointing expectations for an increase of 1.5%. January's figure was revised to a 2.6% drop from a previously estimated 3.9% slide.

The pound was also higher, with GBP/USD advancing 0.93% to 1.4948.

Elsewhere, the dollar remained lower against the yen and the Swiss franc, with USD/JPY sliding 0.34% to 119.90 and with USD/CHF shedding 0.24% to 0.9636.

The yen received a boost after the Bank of Japan left monetary policy unchanged earlier Wednesday despite a slowdown in inflation.

In Switzerland, data showed that consumer prices rose 0.3% last month, exceeding expectations for a 0.2% uptick, after a 0.3% slip in February.

The Australian and New Zealand dollars were still sharply higher, with AUD/USD rallying 0.98% to 0.7707 and NZD/USD jumping 1.07% to 0.7574.

Meanwhile, USD/CAD slid 0.34% to trade at 1.2463, after hitting one-month lows of 1.2388 earlier in the session. offers an extensive set of professional tools for the financial markets.

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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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