Investing.com - The dollar edged lower against the other main currencies on Wednesday as market participants waited for the Federal Reserve’s monthly policy statement, amid expectations that the central bank would leave stimulus policies in place for longer.
During U.S. morning trade, the euro made small gains against the dollar, with EUR/USD rising 0.13% to 1.3763, holding back from last Friday’s 23 month highs of 1.3831.
The Fed was not expected to announce any change to its USD85 billion-a-month asset purchase program later Wednesday.
Many investors were expecting the Fed to signal intentions to maintain its stimulus program into the first quarter of next year, in order to safeguard the fragile U.S. economic recovery in the wake of this month’s 16-day government shutdown.
Data released on Wednesday showing that the U.S. private sector added fewer jobs than expected in October did little to shift these expectations.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
In the euro zone, data released on Wednesday showed that Spain’s economy emerged from a recession in the third quarter, for the first time since 2011. Spain’s economy expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.
The dollar was little changed close to one-week highs against the yen, with USD/JPY inching up 0.03% to 98.19.
Elsewhere, the dollar was slightly lower against the pound and the Swiss franc, with GBP/USD up 0.12% to 1.6066 and USD/CHF slipping 0.21% to 0.8971.
The greenback was rangebound against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching up 0.07% to 0.9487, NZD/USD losing 0.17% to trade at 0.8240 and USD/CAD edging down 0.10% to 1.0458.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.10% to 79.60.
During U.S. morning trade, the euro made small gains against the dollar, with EUR/USD rising 0.13% to 1.3763, holding back from last Friday’s 23 month highs of 1.3831.
The Fed was not expected to announce any change to its USD85 billion-a-month asset purchase program later Wednesday.
Many investors were expecting the Fed to signal intentions to maintain its stimulus program into the first quarter of next year, in order to safeguard the fragile U.S. economic recovery in the wake of this month’s 16-day government shutdown.
Data released on Wednesday showing that the U.S. private sector added fewer jobs than expected in October did little to shift these expectations.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
In the euro zone, data released on Wednesday showed that Spain’s economy emerged from a recession in the third quarter, for the first time since 2011. Spain’s economy expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.
The dollar was little changed close to one-week highs against the yen, with USD/JPY inching up 0.03% to 98.19.
Elsewhere, the dollar was slightly lower against the pound and the Swiss franc, with GBP/USD up 0.12% to 1.6066 and USD/CHF slipping 0.21% to 0.8971.
The greenback was rangebound against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching up 0.07% to 0.9487, NZD/USD losing 0.17% to trade at 0.8240 and USD/CAD edging down 0.10% to 1.0458.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.10% to 79.60.