The dollar edged higher against other major currencies on Friday, as the previous session’s positive data continued to support and as investors were eyeing the release of additional U.S. economic reports later in the day.
EUR/USD slipped 0.13% to 1.1195.
The greenback was supported by Thursday’s better than expected U.S. initial jobless claims data.
The data came a day after the minutes of the Federal Reserve’s May meeting showed that the central bank plans to unwind its balance sheet towards the end of the year, possibly using a system where cap limits are implemented on how much the Fed would roll off every month without reinvesting.
The Fed also signalled that interest rates could be raised soon, but added that “it would be prudent” to wait for more U.S. economic data.
The pound dropped 0.54% to trade at 1.2871, the lowest since May 16, after a YouGov poll on Thursday showed that U.K. Prime Minister Theresa May’s Conservative Party’s lead ahead of the June 8 election was reduced to five points.
Elsewhere, USD/JPY slid 0.35% to 111.44.
The Canadian dollar recovered from recent five-week lows of 1.3385 against the greenback, with USD/CAD steady at 1.3481. But the commodity-related loonie remained under pressure as oil prices continued to decline following OPEC’s decision to extend production cuts by nine months.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09% at 97.24.