· The dollar clung to modest gains on Wednesday after bouncing from 15-month lows, benefiting from a pause in selling of the battered currency as investors begin positioning for key events this week, notably Friday's U.S. employment report.
- The U.S. currency was 0.1 percent higher at 110.490 yen, pulling away from a near seven-week low of 109.920touched overnight.
- The euro was unchanged at $1.1803 after being nudged away from a 2-1/2-year peak of $1.1846 set the previous day. The euro has gained about 12 percent against the dollar so far this year.
- The dollar index against a basket of major currencies was steady at 93.039 after bouncing from 92.777, its lowest since May 2016.
In addition to the political risks and monetary policy uncertainty that have plagued its U.S. peer, the common currency has drawn support from expectations that the European Central Bank would eventually begin phasing out its easy policy.
· A gauge of U.S. factory activity slid from a near three-year high in July amid a slowdown in new orders and consumer spending barely rose in the prior month, setting the stage for a moderate economic expansion in the third quarter.
· In Europe, a preliminary reading on gross domestic product (GDP) from the European Union reflected that second-quarter economic growth in the euro zone was healthy, Reuters reported. The EU's estimate reflected GDP rose 0.6 percent in the second quarter, compared with the quarter before, and 2.1 percent on year.
· Brent crude LCOc1, the international benchmark, settled down 94 cents, or 1.8 percent, to $51.78 a barrel, while U.S. crude CLc1 ended down $1.01, or 2 percent, to $49.16 a barrel.
Oil dropped about 2 percent from a two-month high on Tuesday as major world oil producers kept pumping out supply, causing investors to worry that several weeks of steady gains had pushed the rally too far, too fast.
Selling picked up in the late morning as oil broke below Monday's lows, with more than 925,000 U.S. futures contracts traded, making it the busiest day in the market in nearly three weeks.
· OPEC production rose in July, a Reuters survey found Monday, despite a deal to cut output. That prompted selling after U.S. oil futures had risen more than 16 percent since late June.
· "It seems to be more technical and a combination of that and the OPEC story has everybody running for exits at the same time," said Phil Flynn, analyst at Price Futures Group in Chicago.
· Venezuelan soldiers are increasingly weary of the popular backlash against their role in quelling anti-government protests and all eyes are on the military to see if it will remain loyal to President Nicolas Maduro.
Nearly five months of demonstrations failed to stop Maduro carrying out a weekend vote for a Constitutional Assembly that opponents say will cement his dictatorship in the OPEC nation.
Reference: Reuters, CNBC
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