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Monday 11 December 2017
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Forex – Dollar Lower Against Yen, Pound Remains Weak

Forex6 hours ago (Dec 06, 2017 08:54AM ET)

© Reuters. Dollar Lower Against Yen, Pound Remains Weak

Investing.com – The dollar was lower against the safe haven yen on Wednesday as concerns over a possible U.S. government shutdown offset optimism over progress on tax reform, while Brexit woes continued to pressure sterling.

Investors remained on edge ahead of a Friday deadline to avoid a U.S. government shutdown with government funding set to expire if lawmakers fail to reach a budget accord.

USD/JPY was down 0.45% to 112.10 by 08:45 AM ET (13:45 GMT), its lowest since December 1.

Demand for the yen was also bolstered by heightened geopolitical risks with U.S. President Donald Trump set to recognize Jerusalem as the capital of Israel later on Wednesday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.33 after dipping to an overnight low of 93.13.

The dollar remained supported by optimism that U.S. Congress will soon pass tax reform legislation that gives the economy a fiscal boost.

The greenback showed little reaction to data showing that the U.S. private sector added 190,000 jobs in November.

The ADP report came as investors looked ahead to Friday’s government nonfarm payrolls report for fresh indications on the strength of the labor market.

The euro was a touch lower against the dollar, with EUR/USD edging down to 1.1811.

The pound remained weaker, with GBP/USD down 0.45% at 1.3382 after UK Prime Minister Theresa May failed to reach an agreement to open talks on post-Brexit trade with the European Union.

The pound was also hit by reports overnight of a failed terrorist plot to kill May.

Elsewhere, the Canadian dollar edged higher against its U.S. counterpart ahead of a Bank of Canada meeting later in the day, with USD/CAD last at 1.2673.

The BoC was expected to hold its benchmark rate steady at 1.0% due to uncertainties that could affect the domestic economy, including renegotiation of the North American Free Trade Agreement.

The bank raised rates in July and September for the first time in seven years.

Forex – Dollar Lower Against Yen, Pound Remains Weak

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