Forex — Dollar gains In Asia, In a Thin data day, US tax cuts, eyes

© Reuters. Dollar gains in Asia — The dollar gained against the yen on Wednesday, in a thin regional data day with the focus on the probable unveiling of the plans for the US-tax cuts later in the day.

USD/JPY changed hands at 112.47, up to 0.20%, while AUD/USD lost 0.15% , 0.7874. GBP/USD lost 0.12% to 1.3443, while the GBP/USD dipped 0.10% at 1.1781.

The US dollar index, which rose in the measures of the greenback’s strength against a trade-weighted basket of six major currencies, 0.11% to 92.91.

Overnight, the dollar rose against a basket of major currencies on Tuesday, as investors Chairman Janet Yellen’s comments, trying to think of the Fed Reaffirming the Central Bank is of the view that the increase in the tariffs is gradually to measure the most appropriate policy.

«It would be unwise to keep the monetary policy until the inflation is said to 2 percent,» Yellen on Tuesday, the prepared text of remarks for delivery in Cleveland.

After an initial spike higher, the dollar slightly eased, as investors pondered about Yellen’s concerns that weakening inflation force rates, the lower longer, to facilitate the reduction of the Central Bank, the monetary policy at times of market distress.

«Persistently low inflation such as this is undesirable, because, among other things, it usually leads to low settings of the federal funds rate in normal times, and thus offers fewer opportunities to ease monetary policy to combat the recession,» Yellen said.

S Yellen’s comments only a few hours after the greenback shrugged off duo came to economic reports showing weakness in both consumer confidence and the housing industry.

The Commerce Department said Tuesday new home sales fell by 3.4% to a seasonally adjusted annual rate of 560,000 units last month, the lowest level since December of 2016.

Economists forecasts had, new home sales increased by 3.3% to a rate of 588,000 units in the last month.

In a report by the Conference Board, a market research firm, said its index of consumer confidence fell to EUR 119.8 this month from a reading of 120.4 in August.

The few sluggish reports on the economic growth, however, failed to spark a sell-off of the greenback as weakness in both the euro and the yen capped downside momentum.

EUR/USD fell as worries about the political consequences that maintain in Germany, pressure on the common currency on a one-month low.

USD/JPY rose following Japanese Prime Minister Shinzo Abe decision, a choice, a year early, as he seeks to overcome a new mandate, «a national crisis» against the backdrop of rising threats from North Korea.

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