Dollar recovers ahead of Wall Street open

The dollar recovered Thursday after falling in the wake of Federal Reserve minutes that hinted at a slower pace of US interest rates.

European stock markets fell slightly, with London's benchmark FTSE 100 index down 0.3 percent approaching midday, as traders digested regional economic data.

"Most of the morning’s movement came on the forex market, with investors focused on the UK retail sales and eurozone inflation readings," said Connor Campbell, analyst at traders Spreadex.

"Looking to the US open and the Dow Jones is set to match Europe's relatively mild losses" on stock markets, he added.

British official retail sales rose in July, slightly beating expectations, even though household incomes are still feeling the squeeze from a Brexit-fuelled slump in the pound.

Eurozone inflation was confirmed at 1.3 percent in July.

In Japan, the Nikkei ended marginally down with automakers and banks in retreat, with Japanese shares dragged lower in part by a firm yen.

Traders reacted to news that some members of the US central bank argued it could afford to "be patient" before raising rates again amid persistent weak US inflation. 

"US dollar weakness followed the release of minutes that indicated 'many' members feared inflation will stay lower for longer," said Michael McCarthy, chief market strategist at CMC Markets. 

Wall Street on Wednesday shrugged off developments in Washington to rise above 22,000 points, even as US President Donald Trump disbanded a pair of business advisory boards after several chief executives resigned over his widely criticised response to a white supremacist rally in Charlottesville.

"If you thought the president lacked the necessary key back room operators to implement the White House economic agenda, well things just got worse," said Oanda analyst Stephen Innes. 

"Predictably the dollar sagged, and safe havens (such as the yen) were back in vogue."

Investors are now awaiting the latest European Central Bank minutes due later Thursday. Policymakers have signalled they are considering phasing out stimulus measures as the eurozone economy gathers pace.

On commodities markets, crude prices steadied following a sharp decline overnight after official data showed US production climbed to the highest level in more than two years, heightening worries about a supply glut.

- Key figures around 1015 GMT -

London - FTSE 100: DOWN 0.3 percent at 7,411 points

Frankfurt - DAX 30: DOWN 0.2 percent at 12,234

Paris - CAC 40: DOWN 0.2 percent at 5,165.9

EURO STOXX 50: DOWN 0.3 percent at 3,473.2

Tokyo - Nikkei 225: DOWN 0.1 percent at 19,702.63 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 27,344.22 (close)  

Shanghai - Composite: UP 0.7 percent at 3,268.43 (close)

New York - Dow: UP 0.1 percent at 22,024.87 (close)

Euro/dollar: DOWN at $1.1704 from $1.1767 at 2100 GMT

Pound/dollar: DOWN at $1.2879 from $1.2890 

Dollar/yen: DOWN at 110.09 yen from 110.20 yen

Oil - Brent North Sea: UP one cent at $50.28 per barrel

Oil - West Texas Intermediate: DOWN seven cents at $46.71