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FX:Dollar broadly lower vs. rivals amid Fed stimulus talk
 
Forexpros - The U.S. dollar was broadly lower against its major counterparts on Thursday, as the possibility for fresh easing measures by the Federal Reserve weighed on demand for the greenback, while investors eyed the release of U.S. data later in the day.

During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.12% to 1.2546.

The euro found some support after preliminary data showed that manufacturing activity in the euro zone improved in August, although it remained in contraction territory for the 12th consecutive month.

Market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 45.3 in August from a final reading of 44.0 in July. Analysts had expected the index to ease up to 44.2 in August.

The report also showed that service sector activity in the euro zone deteriorated to a two-month low in August.

Separately, manufacturing activity in Germany in August improved for the first time since January, but remained in contraction territory for the sixth consecutive month, while service sector activity contracted at the fastest pace in 37-months in August.

In France, manufacturing activity improved more-than-expected in August, although it remained in contraction territory for the fifth consecutive month, while service sector activity rose to a seven-month high.

The greenback was steady against the pound, with GBP/USD easing up 0.06% to 1.5890.

The British Banker's Association said earlier that the number of new mortgages approved last month rose to 28.4K from 25.9K in June, compared to expectations for an increase to 28.2K.

Elsewhere, the greenback was steady against the yen, with USD/JPY dipping 0.02% to hit 78.57, but lower against the Swiss franc, with USD/CHF declining 0.14% to trade at 0.9572.

In Switzerland, official data showed that the trade surplus improved unexpectedly in July, rising to CHF2.91 billion from a revised surplus of CHF2.18 billion the previous month, beating expectations for a decline to CHF1.44 billion.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.12% to 0.9902, AUD/USD easing 0.10% to 1.0494 and NZD/USD rising 0.34% to trade at 0.8169.

The export-related currencies remained under pressure however, after data from China showed that manufacturing activity slumped to a nine-month low in August added to concerns over a slowdown in the world’s second largest economy.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% to 81.42.

Later in the day, the U.S. was to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sale
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