Investing.com - The U.S. dollar traded broadly higher against its major rivals during Wednesday’s Asian session as traders await a possible tapering announcement with the conclusion of the Federal Reserve meeting later Wednesday.
In Asian trading Wednesday, EUR/USD fell 0.06% to 1.3350 after the ZEW index of German economic sentiment rose to the highest level since April 2010 in September, which bolstered the single currency.
The German ZEW index rose to 49.6 in September from 42.0 in August. Analysts were forecasting a reading of 46.0. The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August and well above analysts' calls for a 47.2 reading.
GBP/USD inched down 0.03% to 1.5900 after the Office for National Statistics reported that U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
USD/JPY rose 0.09% to 99.22. While the Fed has committed to keep interest rates low, some reduction in the central bank’s USD85 billion-per-month bond-buying program is expected. Tapering to the tune of USD10 billion to USD15 billion is expected by many market participants.
Most market observers do not expect tapering, now being referred to in some corners as "tapering lite," to impact markets much because ongoing speculation should have allowed markets to effectively price in the specter of reduced U.S. easing.
USD/CHF rose 0.06% to 0.9260 while USD/CAD added 0.06% to 1.0303 after data showed a smaller-than-expected decline in U.S. oil inventories last week.
AUD/USD dropped 0.10% to 0.9346. NZD/USD fell 0.19% to 0.8223 after Statistics New Zealand said the country’s current account deficit narrowed more than expected to NZD9.1 billion in June. That equals 4.3% of GDP. Economists expected a reading of 4.8% of GDP.
The U.S. Dollar Index rose 0.07% to 81.36.
In Asian trading Wednesday, EUR/USD fell 0.06% to 1.3350 after the ZEW index of German economic sentiment rose to the highest level since April 2010 in September, which bolstered the single currency.
The German ZEW index rose to 49.6 in September from 42.0 in August. Analysts were forecasting a reading of 46.0. The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August and well above analysts' calls for a 47.2 reading.
GBP/USD inched down 0.03% to 1.5900 after the Office for National Statistics reported that U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
USD/JPY rose 0.09% to 99.22. While the Fed has committed to keep interest rates low, some reduction in the central bank’s USD85 billion-per-month bond-buying program is expected. Tapering to the tune of USD10 billion to USD15 billion is expected by many market participants.
Most market observers do not expect tapering, now being referred to in some corners as "tapering lite," to impact markets much because ongoing speculation should have allowed markets to effectively price in the specter of reduced U.S. easing.
USD/CHF rose 0.06% to 0.9260 while USD/CAD added 0.06% to 1.0303 after data showed a smaller-than-expected decline in U.S. oil inventories last week.
AUD/USD dropped 0.10% to 0.9346. NZD/USD fell 0.19% to 0.8223 after Statistics New Zealand said the country’s current account deficit narrowed more than expected to NZD9.1 billion in June. That equals 4.3% of GDP. Economists expected a reading of 4.8% of GDP.
The U.S. Dollar Index rose 0.07% to 81.36.