Investing.com - The dollar traded higher most major currencies on Wednesday after the Federal Reserve released the minutes of its July policy meeting, which indicated widespread agreement among monetary authorities that USD85 billion in monthly asset purchases should unwind soon.
However, Fed language was not as clear as markets were hoping, which allowed for choppy trading.
In U.S. trading on Wednesday, EUR/USD was down 0.30% at 1.3378.
The Federal Reserve revealed in the minutes of its July policy meeting that while support for tapering monthly asset purchases remains consistent in the U.S. central bank, the timing of such a move remains up in the air as not all voting members remain convinced that data support such a move in the near future.
Investors were hoping for more clarity.
"Almost all participants confirmed that they were broadly comfortable with the characterization of the contingent outlook for asset purchases," the minutes read, which added two camps remain in place over the timing of tapering.
"A few members emphasized the importance of being patient and evaluating additional information on the economy before deciding on any changes to the pace of asset purchases. At the same time, a few others pointed to the contingent plan that had been articulated on behalf of the Committee the previous month, and suggested that it might soon be time to slow somewhat the pace of purchases as outlined in that plan."
Elsewhere, the National Association of Realtors reported earlier that existing home sales jumped 6.5% to 5.39 million annual unit rate in July from June’s revised total of 5.06 million. Analysts were expecting U.S. existing home sales to edge up 1.6% to 5.15 million units.
The greenback, meanwhile, was down against the pound, with GBP/USD up 0.08% at 1.5680.
In the U.K. earlier, the Confederation of British Industry reported that its industrial orders index hit a two-year high in August, coming in a 0 compared to -12 in July.
Analysts were expecting a -8 reading for this month.
Elsewhere, the U.K.’s public sector posted a GBP1.6 billion deficit in July compared to market calls for a GBP4.7 billion deficit.
The dollar was up against the yen, with USD/JPY up 0.61% at 97.86, and up against the Swiss franc, with USD/CHF trading up 0.55% at 0.9224.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.70% at 1.0467, AUD/USD down 0.69% at 0.9007 and NZD/USD trading down 1.40% at 0.7868.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.48% at 81.32.
On Thursday, markets will track U.S. initial jobless claims, manufacturing data and comments from Federal Reserve Bank of Dallas President Richard Fisher, who is due to appear in public.
However, Fed language was not as clear as markets were hoping, which allowed for choppy trading.
In U.S. trading on Wednesday, EUR/USD was down 0.30% at 1.3378.
The Federal Reserve revealed in the minutes of its July policy meeting that while support for tapering monthly asset purchases remains consistent in the U.S. central bank, the timing of such a move remains up in the air as not all voting members remain convinced that data support such a move in the near future.
Investors were hoping for more clarity.
"Almost all participants confirmed that they were broadly comfortable with the characterization of the contingent outlook for asset purchases," the minutes read, which added two camps remain in place over the timing of tapering.
"A few members emphasized the importance of being patient and evaluating additional information on the economy before deciding on any changes to the pace of asset purchases. At the same time, a few others pointed to the contingent plan that had been articulated on behalf of the Committee the previous month, and suggested that it might soon be time to slow somewhat the pace of purchases as outlined in that plan."
Elsewhere, the National Association of Realtors reported earlier that existing home sales jumped 6.5% to 5.39 million annual unit rate in July from June’s revised total of 5.06 million. Analysts were expecting U.S. existing home sales to edge up 1.6% to 5.15 million units.
The greenback, meanwhile, was down against the pound, with GBP/USD up 0.08% at 1.5680.
In the U.K. earlier, the Confederation of British Industry reported that its industrial orders index hit a two-year high in August, coming in a 0 compared to -12 in July.
Analysts were expecting a -8 reading for this month.
Elsewhere, the U.K.’s public sector posted a GBP1.6 billion deficit in July compared to market calls for a GBP4.7 billion deficit.
The dollar was up against the yen, with USD/JPY up 0.61% at 97.86, and up against the Swiss franc, with USD/CHF trading up 0.55% at 0.9224.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.70% at 1.0467, AUD/USD down 0.69% at 0.9007 and NZD/USD trading down 1.40% at 0.7868.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.48% at 81.32.
On Thursday, markets will track U.S. initial jobless claims, manufacturing data and comments from Federal Reserve Bank of Dallas President Richard Fisher, who is due to appear in public.