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Dollar Flat as U.S. Inflation Remains Sluggish

Investing.com – The U.S. dollar was flat against its rivals on Friday as weaker-than-expected inflation reaffirmed expectations that the Federal Reserve is likely to remain on pause.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.04% to 97.12.

The Labor Department said on Friday its Consumer Price index slowed to 0.3% last month after edging up 0.4% in March.

"With productivity turning higher and unit labor costs little changed in the past year, we won’t need to worry about rising inflation for a while, even if the latest tariff hike tacks on another tenth or two to the CPI," BMO said in a note.

GBP/USD fell 0.02% to $1.3010 as an in-line preliminary reading of first-quarter U.K. GDP was offset by doubts that Prime Minister Theresa May can reach a deal with the opposition on a way forward to leave the European Union.

EUR/USD rose 0.08% to $1.1233, while USD/CAD fell 0.45% to C$1.3413.

USD/CAD fell 0.04% to C$1.3357 on better-than-expected Canadian labor market data.

USD/JPY rose 0.22% to Y110.03 on improved risk sentiment as President Donald Trump said U.S. and China trade talks would continue.

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