Investing.com - The dollar rose to session highs against the euro on Wednesday following reports that the European Central Bank may cut deposit rates below zero, as investors awaited the minutes of the Federal Reserve’s October meeting.
During U.S. morning trade, EUR/USD fell 0.53% to 1.3465 from Tuesday’s close of 1.3537.
The euro tumbled after Bloomberg reported that sources close to the ECB said the bank is to weigh a -0.1% deposit rate if more easing is required.
The ECB surprised investors after it unexpectedly cut rates to a record low 0.25% earlier this month amid concerns over mounting deflationary pressures in the euro area.
USD/JPY was down 0.27% to 99.86 ahead of the October Fed minutes, which were expected to reveal more details on the bank’s decision to stick with its stimulus program last month.
Fed Chairman Ben Bernanke reiterated the bank’s commitment to highly accommodative monetary policy on Tuesday and said the Fed would only taper its USD85 billion-a-month asset purchase program when it was assured of a sustained recovery in the labor market.
Data released on Wednesday showed that U.S. retail sales rose 0.4% in October, beating expectations for a 0.1% increase. Core retail sales were up 0.2%, above expectations for a 0.1% rise.
Another report showed that U.S. consumer prices fell for the first time in six months in October, declining 0.1%.
Meanwhile, private sector data showed that U.S. existing home sales fell slightly in October.
The pound traded up to three week highs against the dollar, with GBP/USD rising 0.29% to 1.6165.
The pound initially softened after the minutes of the Bank of England’s November meeting said there were “uncertainties” over the durability of the U.K. economic recovery past the end of this year, before regaining ground.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.39% to 0.9144.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.42% to 0.9393, NZD/USD losing 0.62% to trade at 0.8320 and USD/CAD sliding 0.23% to 1.0442.
The Aussie weakened after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.24% to 80.90.
During U.S. morning trade, EUR/USD fell 0.53% to 1.3465 from Tuesday’s close of 1.3537.
The euro tumbled after Bloomberg reported that sources close to the ECB said the bank is to weigh a -0.1% deposit rate if more easing is required.
The ECB surprised investors after it unexpectedly cut rates to a record low 0.25% earlier this month amid concerns over mounting deflationary pressures in the euro area.
USD/JPY was down 0.27% to 99.86 ahead of the October Fed minutes, which were expected to reveal more details on the bank’s decision to stick with its stimulus program last month.
Fed Chairman Ben Bernanke reiterated the bank’s commitment to highly accommodative monetary policy on Tuesday and said the Fed would only taper its USD85 billion-a-month asset purchase program when it was assured of a sustained recovery in the labor market.
Data released on Wednesday showed that U.S. retail sales rose 0.4% in October, beating expectations for a 0.1% increase. Core retail sales were up 0.2%, above expectations for a 0.1% rise.
Another report showed that U.S. consumer prices fell for the first time in six months in October, declining 0.1%.
Meanwhile, private sector data showed that U.S. existing home sales fell slightly in October.
The pound traded up to three week highs against the dollar, with GBP/USD rising 0.29% to 1.6165.
The pound initially softened after the minutes of the Bank of England’s November meeting said there were “uncertainties” over the durability of the U.K. economic recovery past the end of this year, before regaining ground.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.39% to 0.9144.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.42% to 0.9393, NZD/USD losing 0.62% to trade at 0.8320 and USD/CAD sliding 0.23% to 1.0442.
The Aussie weakened after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.24% to 80.90.