Investing.com - The dollar was broadly higher against the other major currencies on Wednesday, after the release of positive U.S. data, while investors eyed the outcome of the Federal Reserve's two-day policy meeting.
During European afternoon trade, EUR/USD slipped 0.17% to 1.3744.
In a report, the Census Bureau said building permits in the U.S. fell 3.1% to 1.01 million units in November, from 1.04 million units the previous month. Analysts had expected building permits to drop 4.7% last month to 0.99 million units.
U.S. housing starts rose to 1.09 million units last month, from 0.89 million in October, compared to expectations for an increase to 0.95 million units.
Investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that the bank will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
In the euro zone, data earlier showed that the Ifo German business climate index rose to a 20-month high of 109.5 in December, in line with forecasts and up from 109.3 in November.
The pound rose against the dollar, with GBP/USD climbing 0.68% to 1.6376.
The Office for National Statistics said the U.K. unemployment rate fell to 7.4% in the three months to October, the lowest level since April 2009. Economists had expected the jobless rate to remain unchanged at 7.6%.
The data fuelled expectations that the Bank of England may raise interest rates sooner than expected. In August, the central bank pledged to keep rates on hold as long as the U.K. unemployment rate remains above 7%.
The number of people claiming unemployment benefits fell by 36,700 in November, the ONS said, better than expectations for a decline of 35,000. October’s figure was revised to a drop of 42,800 people from a previously reported decline of 41,700.
Meanwhile, the minutes of the BoE’s December meeting said further significant gains in sterling could put the U.K. economic recovery at risk.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY up 0.38% to 103.06 and USD/CHF gaining 0.41% to 0.8885.
The greenback was steady to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.06% to 0.8905, NZD/USD slipping 0.27% to 0.8250 and USD/CAD rising 0.37% to 1.0647.
In Canada, official data showed that wholesale sales rose 1.4% in October, beating expectations for a 0.4% gain, after a 0.2% uptick the previous month.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% to 80.28.
During European afternoon trade, EUR/USD slipped 0.17% to 1.3744.
In a report, the Census Bureau said building permits in the U.S. fell 3.1% to 1.01 million units in November, from 1.04 million units the previous month. Analysts had expected building permits to drop 4.7% last month to 0.99 million units.
U.S. housing starts rose to 1.09 million units last month, from 0.89 million in October, compared to expectations for an increase to 0.95 million units.
Investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that the bank will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
In the euro zone, data earlier showed that the Ifo German business climate index rose to a 20-month high of 109.5 in December, in line with forecasts and up from 109.3 in November.
The pound rose against the dollar, with GBP/USD climbing 0.68% to 1.6376.
The Office for National Statistics said the U.K. unemployment rate fell to 7.4% in the three months to October, the lowest level since April 2009. Economists had expected the jobless rate to remain unchanged at 7.6%.
The data fuelled expectations that the Bank of England may raise interest rates sooner than expected. In August, the central bank pledged to keep rates on hold as long as the U.K. unemployment rate remains above 7%.
The number of people claiming unemployment benefits fell by 36,700 in November, the ONS said, better than expectations for a decline of 35,000. October’s figure was revised to a drop of 42,800 people from a previously reported decline of 41,700.
Meanwhile, the minutes of the BoE’s December meeting said further significant gains in sterling could put the U.K. economic recovery at risk.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY up 0.38% to 103.06 and USD/CHF gaining 0.41% to 0.8885.
The greenback was steady to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.06% to 0.8905, NZD/USD slipping 0.27% to 0.8250 and USD/CAD rising 0.37% to 1.0647.
In Canada, official data showed that wholesale sales rose 1.4% in October, beating expectations for a 0.4% gain, after a 0.2% uptick the previous month.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% to 80.28.