Forex – Dollar Trickles Lower on Sluggish Labor, Trade Data

© Reuters. – The dollar retreated from highs against a basket of major currencies amid mostly bearish economic data and dovish comments from St. Louis Federal Reserve president James Bullard.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.11% to 89.47.

A pair of economic reports on the labour market and trade fell short of expectations, weighing on the dollar, and reminded investors that there is some sluggishness remains in the economy.

The U.S. Labor Department’s latest (JOLTs) report, a measure of labor demand, showed job openings in December fell to about 5.81m, short of expectations for 5.96m.

The trade deficit — which measures the gap between what the United States imports and what it exports — widened to , up $2.7 billion from November.

St. Louis Federal Reserve president James Bullard attempted to curb expectations that rising wage growth would spur faster inflation, warning that . Bullard also said that that he favors low rates for an extended period, and expected that the Fed’s dot plot may be less useful.

fell to 0.04% to $1.3952 as negative brexit-related commentary offset ongoing expectations that the Bank of England on Thursday will upgrade growth forecasts and signal tighter monetary policy are needed to combat rising inflation.

The rose 0.08% to $1.2380 amid bullish a report on which topped economists’ forecast.

rose 0.09% to Y109.19, while fell 0.03% to C$1.2533 as the loonie came under pressure following data showing the

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