Forex – Dollar index almost unchanged ahead of U.S. data

Investing.com – The dollar was almost unchanged against other major currencies on Friday, hovering close to a three-week peak ahead of U.S. data to be release later in the day, although concerns over recent U.S. political events persisted.

EUR/USD held steady at 1.0869, just off a two-and-a-half week low of 1.0838 hit on Thursday.

The greenback remained supported after the release on Thursday of upbeat reports on initial jobless claims and producer price inflation, which added to expectations for a rate hike by the Federal Reserve next month.

However, markets were still jittery since U.S. President Donald Trump’s unexpected decision to fire FBI Director James Comey.

Comey had been leading his agency’s investigation into alleged Russian meddling in the 2016 U.S. presidential campaign and possible collusion with Trump’s campaign.

Investors were concerned the latest events in Washington could hamper the U.S. administration’s ability to implement promised tax reform and stimulus measures.

In the euro zone, preliminary data earlier showed that German gross domestic product rose 0.6% in the first quarter, in line with market expectations and up from a growth rate of 0.4% in the three months to December.

Elsewhere, GBP/USD slipped 0.25% to 1.2854.

USD/JPY edged down 0.23% to 113.60, pulling away from Thursday’s two-month high of 114.39, while USD/CHF was little changed at 1.0074.

The Australian dollar was stronger, with AUD/USD up 0.24% at 0.73959, while NZD/USD held steady at 0.6852.

Earlier Friday, data showed that the Business NZ Manufacturing Index slipped to 56.8 in April from 57.8 the previous month.

Meanwhile, USD/CAD held steady at 1.3701.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 99.50, just off Thursday’s three-week high of 99.77.