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Forex: U.S. Dollar Falls Slightly on Lack of Trade News

Investing.com - The U.S. dollar was lower on Wednesday as a lack of fresh news on the U.S-China trade war front gave investors a reason to pause.

Hopes of a breakthrough in the coming weeks had caused the dollar and U.S. equity markets to skyrocket, but that momentum has paused on a lack of substantial news.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped 0.1% to 97.735 as of 11:09 AM ET (15:09 GMT).

The safe haven Japanese yen was higher with USD/JPY down 0.1% to 109.03.

Strong economic data has also supported the greenback in recent weeks, as it has eased expectations that the U.S. Federal Reserve will cut rates at an aggressive pace. That sentiment was supported by comments from Chicago Fed President Charlie Evans, who told reporters on Wednesday that the U.S. economy is in a good place. Still, he said he would be looking at inflation in deciding what the future stance of monetary policy should be.

U.S. service sector data published on Tuesday showed that business sentiment rebounded in October from a three-year low in September, while the ISM non-manufacturing sector index rose to 54.7 from 52.6 in September. The data follows a strong employment report from Friday.

Elsewhere, the euro was flat, while GBP/USD was down 0.1% to 1.2868.

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