Investing.com - The U.S. dollar was higher against its major counterparts on Wednesday, as investors were cautious ahead of the Federal Reserve’s rate statement later in the day while Greek debt concerns continued to weigh.
During European morning trade, the dollar was steady against the euro, with EUR/USD shedding 0.29% to hit 1.2999.
Concerns over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
But the euro remained supported after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
The greenback was higher against the pound, with GBP/USD declining 0.38% to hit 1.5566.
Preliminary data showed earlier that the U.K.’s growth domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.54% to hit 78.09 and USD/CHF advancing 0.25% to hit 0.9300.
Earlier Wednesday, government data showed that Japan’s trade deficit widened unexpectedly in December, marking the country’s first annual trade deficit since 1980.
Meanwhile, the Bank of Japan said in its monthly report that the country's exports are likely to increase moderately going forward, as recovery in overseas economies gathers pace.
Elsewhere, the greenback was higher against its Canadian Australian and New Zealand counterparts, with USD/CAD gaining 0.36% to hit 1.0127, AUD/USD inching down 0.06% to hit 1.0487 and NZD/USD declining 0.45% to hit 0.8082.
The Reserve Bank of Australia said earlier that Australia’s consumer price inflation was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The report also showed that trimmed mean CPI rose more-than-expected in the fourth quarter, ticking up 0.6% after a 0.4% rise the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.25%, to hit 80.20.
The Fed was to announce the federal funds rate and publish its official rate statement later Wednesday. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
During European morning trade, the dollar was steady against the euro, with EUR/USD shedding 0.29% to hit 1.2999.
Concerns over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
But the euro remained supported after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
The greenback was higher against the pound, with GBP/USD declining 0.38% to hit 1.5566.
Preliminary data showed earlier that the U.K.’s growth domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.54% to hit 78.09 and USD/CHF advancing 0.25% to hit 0.9300.
Earlier Wednesday, government data showed that Japan’s trade deficit widened unexpectedly in December, marking the country’s first annual trade deficit since 1980.
Meanwhile, the Bank of Japan said in its monthly report that the country's exports are likely to increase moderately going forward, as recovery in overseas economies gathers pace.
Elsewhere, the greenback was higher against its Canadian Australian and New Zealand counterparts, with USD/CAD gaining 0.36% to hit 1.0127, AUD/USD inching down 0.06% to hit 1.0487 and NZD/USD declining 0.45% to hit 0.8082.
The Reserve Bank of Australia said earlier that Australia’s consumer price inflation was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The report also showed that trimmed mean CPI rose more-than-expected in the fourth quarter, ticking up 0.6% after a 0.4% rise the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.25%, to hit 80.20.
The Fed was to announce the federal funds rate and publish its official rate statement later Wednesday. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.