Daily Afternoon Report 13.06.2016

The dollar was little changed against the other major currencies in subdued trade today, as investors remained cautious ahead of the Federal Reserve’s monthly policy meeting this week.

Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.

Meantime, the safe-haven yen strengthened as weak economic data out of China and Japan today hit the outlook for Asian economic growth.

Data from China showed that growth in fixed-asset investment fell below 10% for the first time since 2000 in the January to May period.

Another report showed that Japan’s business survey index of sentiment at large manufacturers fell to minus 11.1 in the second quarter, from a reading of minus 7.9 in the first three months of the year.

The dollar was higher against the pound, with GBP/USD down 0.57% at a two-month low and was steady against the Swiss franc.

Sterling came under pressure in recent sessions amid fears that a U.K. exit or Brexit from the EU in the June 23 referendum could trigger a period of uncertainty in financial markets and hit growth in the region.

An opinion poll on Friday conducted by ORB International put support for a Brexit at 53%, against 47% for remaining.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at a one-week high of 94.59.