Dollar remains moderately higher with Fed minutes on tap
Investing.com - The dollar remained moderately higher against the other major currencies on Wednesday, despite the release of disappointing U.S. housing sector data as markets awaited the minutes of the Federal Reserve’s latest policy meeting.
The greenback mildly weakened after the U.S. Commerce Department reported that the number of housing starts and building permits both fell in July.
The weak data offset optimism sparked on Tuesday when data showed that U.S. retail sales rose at a faster than expected rate last month.
Market participants were looking ahead to the Fed’s most recent policy meeting for indications on another potential rate hike this year.
EUR/USD was down 0.18% at 1.1713 following reports European Central Bank President Mario Draghi will not deliver any fresh monetary policy message at the U.S. Federal Reserve's Jackson Hole conference.
The report tempered expectations that the ECB is moving closer to announcing plans to scale back its monetary stimulus program.
Sentiment on the single currency briefly improved after preliminary data showed that the euro zone economy grew at a faster rate that expected in the second quarter.
The pound held steady, with GBP/USD at 1.2865, just off a one-month trough of 1.2843 hit overnight.
Sterling found support earlier, after official data earlier showed that the U.K. jobless rate unexpectedly dropped in June while wage inflation registered a stronger-than-expected increase
Elsewhere, USD/JPY was little changed at 110.73, while USD/CHF was also steady at 0.9733.
The Australian and New Zealand dollars remained stronger, with AUD/USD up 0.81% at 0.7885 and with NZD/USD gaining 0.43% to 0.7267.
Meanwhile, USD/CAD slid 0.38% to trade at 1.2710, just off Tuesday’s one-month peak of 1.2778.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 93.85, off session highs of 94.01 but still close to Tuesday’s three-week peak of 94.04.
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