Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Dollar broadly lower ahead of Fed

Published 05/01/2013, 04:20 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The dollar was broadly lower against the other major currencies on Wednesday ahead of the outcome of the Federal Reserve’s latest policy meeting later in the trading day.

During European morning trade, the dollar was trading near two-week lows against the euro, with EUR/USD rising 0.12% to 1.3179.

The dollar remained under pressure after recent soft U.S. economic data saw investors trim back expectations for an earlier-than-expected end to the Fed’s asset purchase program.

Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.

In the euro zone, speculation over a rate cut by the European Central Bank on Thursday intensified after data on Tuesday showed that euro zone unemployment rose to a record in March, while inflation fell more-than-expected in April.

Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.

The dollar was steady near two-and-a-half month lows against the pound, with GBP/USD edging up 0.05% to 1.5538.

The dollar edged higher against the yen, with USD/JPY easing up 0.14% to 97.53.

The dollar was fractionally higher against the Swiss franc, with USD/CHF edging up 0.07% to 0.9300.

The greenback pushed higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD sliding 0.17% to 1.0353, NZD/USD dipping 0.05% to 0.8560 and USD/CAD inching down 0.08% to 1.0062.

The Australian dollar hit session lows after official data showed that China’s manufacturing purchasing managers' index ticked down to 50.6 from an 11-month high of 50.9 in March, as new export orders fell.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.04% to 81.72.

Trade volumes looked set to remain thin on Wednesday, with many bourses in Europe shut for the Labor Day holiday.

Later Wednesday, the U.S. was to release data on ADP nonfarm payrolls, while the Institute of Supply Management was to publish its report on manufacturing activity.




Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.