Trading ranged at $1,310.30-1,315.55 so far after slipping to a two-month low of $1,309.20 on Tuesday.
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U.S. consumer confidence rose to an 11-month high in August, with households more upbeat about the labour market, in a further sign that the economy was regaining steam after faltering in the first half of the year.
TOKYO, Sept 1 The dollar wavered against the yen and euro on Thursday, its advance stalling ahead of a closely-watched USA non-farm jobs report on Friday which is expected to shape the market’s near-term interest rate expectations.
The dollar index, measured against a basket of currencies, fell 0.1 per cent to 95.957.
GBP/USD is supported in the range of 1.3018 now trading at 1.3075 levels.
The data stoked expectations that the Fed could raise rates this year after top Federal Reserve officials said recently that such a move was possible. On Wednesday, Boston Fed President Eric Rosengren said the Fed should consider that quicker interest rate rises over time could stave off risks to the economy, while Chicago Fed President Charles Evans said he is increasingly convinced that USA economic growth has slowed permanently. “An increase in U.S. consumer confidence in August, reported on Tuesday, acted as an additional brake”, Credit Suisse said on Wednesday morning. The pound has fallen more than 1 percent against the dollar since Friday’s comments by the Fed’s Yellen and Fischer. Palladium was up 0.7 percent at $674, after falling to a near six-week low of $665.97. It has made session high at 1.3102 and lows at 1.3060 levels.
USA stocks fell yesterday after stronger-than-expected United States consumer confidence data stoked worries about a potential Federal Reserve interest rate hike this year, while European shares gained and the dollar climbed.
The markets are zeroing in on Friday’s August nonfarm payrolls report, widely considered to be one of the Fed’s main economic barometers. GDP figures for June that are also set for release on Wednesday are expected to show growth picked up by 0.4 percent, which should bolster expectations that the economy will rebound in the third quarter.
Murenbeeld expected the Fed to lift rates to provide some wriggle room in case of any near-term economic weakness, given rates are now close to 0%.
Spot silver lost 0.9 percent to $18.7075 an ounce, and is heading for an 8 percent monthly decline.
The manufacturing sector is lagging gains in the economy as factories continue to process the lingering effects of the dollar’s past rally and oil price collapse.
Expectations for the timing of a Fed rate hike have see-sawed, sending the dollar down nearly 3 percent this year after making near double-digit gains in calendar 2015 and 2014. At the conference, central bank Chair Janet Yellen indicated that the case for tightening monetary policy had strengthened.
“The 104 level will come into view for dollar/yen if the U.S. ADP employment report beats expectations”, said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.
The greenback gained against the yen to 103.39 yen JPY= , after hitting 103.53, its highest since July 29.
In other precious metals, silver was last at $18.715/18.735, up $0.11. Oversupply remained a major concern, with USA crude stockpiles forecast to have risen by 1.3 million barrels last week, a Reuters poll showed.
Apple Inc was the largest weight on US stock indexes on Tuesday after antitrust regulators ordered the company to pay about $14.5 billion in back taxes to the Irish government, but gains in bank shares partly offset the decline.
The S&P 500 was down 4.35 points, or 0.2 per cent, at 2,176.03. It was also an improvement upon last month’s result which was 96.7.
Growing expectations the Federal Reserve will raise US interest rates this year pushed the dollar up for a seventh time in eight days on Tuesday.
Gold for December delivery settled up 0.4% to $1,317.10 a troy ounce on the Comex division of the New York Mercantile Exchange, breaking a two-day losing streak.
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Brent crude futures settled down 89 cents, or 1.8 percent, at $48.37 per barrel. U.S. gold futures were flat at $1,317.80.
