Investing.com - The dollar rose against most major currencies on Wednesday after the Federal Reserve said a decision to taper its monthly asset purchases could come in a few months, while reports the European Central Bank is considering negative interest rates also firmed demand for the greenback.
In U.S. trading on Wednesday, EUR/USD was down 0.82% at 1.3427.
A decision to taper the pace of assets will come when economic indicators point to an economy that is clearly gaining steam, and although monetary authorities did not suggest when that month may arrive, markets felt it will come soon.
"During this general discussion of policy strategy and tactics, participants reviewed issues specific to the Committee's asset purchase program. They generally expected that the data would prove consistent with the Committee's outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months," the minutes read.
Data released earlier supported the greenback as well.
The U.S. Commerce Department reported that retail sales expanded 0.4% in October, blowing past expectations for a 0.1% gain after coming in flat the month earlier.
The data fueled optimism that the consumer-driven U.S. economy is on the mend and may keep the Federal Reserve on track to begin winding down stimulus measures in early 2014.
Elsewhere, the Commerce Department reported that wholesale business inventories inched up by 0.6% in September compared to expectations for a 0.3% gain.
Weak data out of the housing sector failed to cap the dollar's advance.
The National Association of Realtors reported earlier that existing home sales declined 3.2% to a seasonally adjusted 5.12 million units in October from 5.29 million in September.
Analysts had expected U.S. existing home sales to fall 2.6% to 5.13 million units last month.
Consumer price inflation figures largely met expectations.
U.S. Department of Labor said the country's consumer price index fell by a seasonally adjusted 0.1% in October, defying expectations for a 0.1% increase after rising by 0.2% in September.
Year-over-year, the U.S. consumer price index rose at an annualized rate of 1.0% last month, in line with estimates and slowing from 1.2% in September.
The core consumer price index, which is stripped of volatile food and energy costs, inched up 0.1% in October, in line with forecasts. Core consumer prices rose 0.1% in September.
The U.S. core CPI increased at annualized rate of 1.7% last month, unchanged from September and in line with expectations.
Across the Atlantic, the euro weakened 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.
The greenback was up against the pound, with GBP/USD down 0.12% at 1.6100.
The dollar was down against the yen, with USD/JPY down 0.15% at 99.99, and up against the Swiss franc, with USD/CHF up 0.68% at 0.9172.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.21% at 1.0448, AUD/USD down 1.09% at 0.9332 and NZD/USD trading down 1.33% at 0.8262.
The Australian dollar came under pressure after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.50% at 81.11.
On Thursday, the U.S. is release data on producer price inflation, as well as the weekly report on initial jobless claims. The U.S. is also to release data manufacturing activity from the Philly Fed.
In U.S. trading on Wednesday, EUR/USD was down 0.82% at 1.3427.
A decision to taper the pace of assets will come when economic indicators point to an economy that is clearly gaining steam, and although monetary authorities did not suggest when that month may arrive, markets felt it will come soon.
"During this general discussion of policy strategy and tactics, participants reviewed issues specific to the Committee's asset purchase program. They generally expected that the data would prove consistent with the Committee's outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months," the minutes read.
Data released earlier supported the greenback as well.
The U.S. Commerce Department reported that retail sales expanded 0.4% in October, blowing past expectations for a 0.1% gain after coming in flat the month earlier.
The data fueled optimism that the consumer-driven U.S. economy is on the mend and may keep the Federal Reserve on track to begin winding down stimulus measures in early 2014.
Elsewhere, the Commerce Department reported that wholesale business inventories inched up by 0.6% in September compared to expectations for a 0.3% gain.
Weak data out of the housing sector failed to cap the dollar's advance.
The National Association of Realtors reported earlier that existing home sales declined 3.2% to a seasonally adjusted 5.12 million units in October from 5.29 million in September.
Analysts had expected U.S. existing home sales to fall 2.6% to 5.13 million units last month.
Consumer price inflation figures largely met expectations.
U.S. Department of Labor said the country's consumer price index fell by a seasonally adjusted 0.1% in October, defying expectations for a 0.1% increase after rising by 0.2% in September.
Year-over-year, the U.S. consumer price index rose at an annualized rate of 1.0% last month, in line with estimates and slowing from 1.2% in September.
The core consumer price index, which is stripped of volatile food and energy costs, inched up 0.1% in October, in line with forecasts. Core consumer prices rose 0.1% in September.
The U.S. core CPI increased at annualized rate of 1.7% last month, unchanged from September and in line with expectations.
Across the Atlantic, the euro weakened 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.
The greenback was up against the pound, with GBP/USD down 0.12% at 1.6100.
The dollar was down against the yen, with USD/JPY down 0.15% at 99.99, and up against the Swiss franc, with USD/CHF up 0.68% at 0.9172.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.21% at 1.0448, AUD/USD down 1.09% at 0.9332 and NZD/USD trading down 1.33% at 0.8262.
The Australian dollar came under pressure after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.50% at 81.11.
On Thursday, the U.S. is release data on producer price inflation, as well as the weekly report on initial jobless claims. The U.S. is also to release data manufacturing activity from the Philly Fed.