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Forex - Dollar mostly lower on hopes Fed will keep easing

Published 04/30/2013, 08:48 PM
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Investing.com - The U.S. dollar is trading lower against most of its major rivals during Wednesday’s Asian session as traders speculate the Federal Reserve is not prepared to begin winding down or bring an end to bond-buying activities.

In Asian trading Wednesday, EUR/USD inched up 0.07% to 1.3179 after data published Tuesday showed the euro zone’s unemployment rate rose to 12.1% in March, from 12.0% in February, in line with expectations.

The euro zone's year-on-year consumer price index rose 1.2% in April, below the 1.7% rate recorded in March and well below expectations for a decline to 1.6%.

Traders continue to speculate that due to the euro zone’s flailing economy, the ECB will be forced into parting interest rates sooner than later. The central bank’s benchmark interest rate is currently 0.75%. Last month, the International Monetary Fund pushed the ECB to consider lowing interest rates as a means of bolstering economic growth.

USD/JPY fell 0.22% to 97.22 as traders await the official April reading of China’s Manufacturing Index, which is due out later Wednesday. Markets in China, Hong Kong, India, South Korea, Taiwan, Singapore, Malaysia, Thailand, Vietnam and the Philippines are closed Wednesday for public holidays.

GBP/USD rose 0.07% to 1.5544 after U.K. data released Tuesday that net lending to individuals fell to GBP0.9 billion in March, below expectations for GBP1.3 billion.

A separate report showed that U.K. mortgage approvals rose to 54,000 last month from 52,000 in February, above expectations for 53,000.

USD/CHF inched lower by 0.03% to 0.9293. USD/CAD fell 0.08% to 1.0066 even after data from the American Petroleum Institute showed U.S. oil inventories jumped by 5.2 million barrels last week, well above 1.4 million-barrel increase analysts expected. Gasoline inventories slid by 2.7 million barrels and distillate stockpiles declined by 1.1 million barrels.

AUD/USD nudged higher by 0.03% 1.0377 while NZD/USD rose 0.08% to 0.8575. The U.S. Dollar Index fell 0.07% to 81.70.


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