The U.S. dollar stabilized in early European trade Thursday, after hefty losses this week as signs of a cooling U.S. economy pointed to limited headroom for the Federal Reserve to keep raising interest rates.
At 03:10 ET (07:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 103.162, after dropping nearly 1% so far this week.
The greenback has weakened this week, pulling back from a near three-month high, on indications of cooling spending and hiring in the U.S., prompting traders to pare bets for further interest rate hikes by the Federal Reserve this year.
EUR/USD fell 0.2% to 1.0903, after gaining 0.4% on Wednesday when higher-than-expected inflation numbers in Germany and Spain raised the pressure on the European Central Bank to keep lifting interest rates.
The eurozone CPI is expected to rise 5.1% on an annual basis in August, a slight cooling from July's 5.3%, but Wednesday's data pointed to potential upside
GBP/USD fell 0.1% to 1.2706, after gaining overnight as the dollar weakened, while USD/JPY fell 0.2% to 145.91, with the yen buoyed by stronger-than-expected retail sales data for July, although industrial production shrank more than expected.
Source : Investing.com
