The US dollar was little changed today as US economic reports did not give the currency an edge and market participants were unsure whether the Federal Reserve will be able to carry on with its plan for three interest rate hikes in 2017.
The Dollar Index was at 97.539 today, basically flat. US economic data released over the trading session was mixed. Unemployment claims rose a bit last week within expectations, while the leading indicators increased in May less than was expected, but more than in April.
The major theme for the US currency remains central bank’s monetary policy. Fed officials were hawkish for the most part, and at the last week’s meeting the Fed preserved its plan for three rate hikes in total this year. Yet many market participants doubt that the current economic conditions warrant such aggressive tightening and think that the policy makers will have to pause the hike cycle.
EUR/USD slipped from 1.1167 to 1.1154 as of 17:24 GMT today. GBP/USD traded at about the opening level of 1.2670. USD/JPY traded at 111.33 after opening at 111.37 and falling to the daily low of 110.94.
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