Dollar Little Changed in Quiet Pre-Holiday Trade

Dollar Little Changed in Quiet Pre-Holiday Trade
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(December 21, 2017) The dollar was little changed near two-and-a-half week lows against other majors currencies on Thursday, as optimism surrounding U.S. tax reform plans continued to wind down ahead of the Christmas holiday.

The greenback showed little reaction after the House of Representatives gave final approval on Wednesday to the biggest U.S. tax overhaul in 30 years, marking a major political victory for President Donald Trump.

Market participants were also cautious ahead a final U.S. third-quarter economic growth report due later in the day, as well as data on manufacturing activity and jobless claims.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 92.89 by 05:15 a.m. ET (09:15 GMT), just off the previous session’s two-and-a-half week low of 92.76.

The euro was steady, with EUR/USD at 1.1880, while GBP/USD eased up 0.08% to 1.3386.

The yen and the Swiss franc were little changed, with USD/JPY at 113.47 and with USD/CHF at 0.9865.

In a widely expected move, the Bank of Japan left its monetary policy unchanged on Thursday.

The central bank also underlined the fact that as inflation is still far from the 2% target despite a growing economy.

Elsewhere, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.09% at 0.7660, and with NZD/USD slipping 0.20% to 0.7000.

Earlier Thursday, Statistics New Zealand reported that the country’s expanded by 0.6% in the third quarter, beating expectations for 0.5%. Year-over-year, New Zealand’s economy grew 2.7% in the last quarter, compared to expectations for a growth rate of 2.3%.

Meanwhile, USD/CAD was almost unchanged at 1.2834.

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