Dollar slips lower ahead of U.S. inflation report By Investing.com

Dollar loses some ground with U.S. inflation in focus

Investing.com – The U.S. dollar slipped lower against other major counterparts on Friday, erasing gains posted after the previous session’s upbeat U.S. data, as investors remained cautious ahead of a highly-anticipated U.S. inflation report due later in the day.

The greenback was boosted after the U.S. Department of Labor reported on Thursday that initial jobless claims fell more than expected to last week.

A separate report showed that producer prices increased in September, in line with expectations. Core producer prices, which exclude food and energy also rose , beating expectations for a 0.2% uptick.

The data came a day after the of the Federal Reserve’s September policy meeting showed that policymakers .

Several policymakers believe additional tightening will depend on upcoming inflation data. However, most Fed members said they feel another rate increase this year “was likely to be warranted,” the report showed.

Market participants were looking ahead to the highly-anticipated set to be released later Friday.

edged up 0.10% to 1.1844, while added 0.09% to trade at 1.3274.

Sterling remained under pressure after European Union chief negotiator Michel Barnier announced on Thursday that

The euro remained mildly supported as Catalonia stopped short of formally declaring independence from Spain this week.

However, European Central Bank President Mario Draghi reiterated in a speech on Thursday that until officials see a sustained improvement in the outlook for inflation.

Draghi added that interest rates would remain at current levels “well past” the time the central bank stops buying assets.

Elsewhere, edged 0.19% lower to 112.09, while held steady at 0.9752.

The Australian and New Zealand dollars were stronger, with up 0.22% at 0.7837 and with adding 0.13% to trade at 0.7135 after data earlier showed that China’s imports increased by last month, beating expectations, while exports rose less than expected by .

China is Australia’s biggest export partner and New Zealand’s second biggest export partner.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 92.81 by 02:20 a.m. ET (06:20 GMT), re-approaching the previous session’s two-week trough of 92.64.

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