Investing.com - The euro dipped against the dollar on Wednesday, as investors positioned ahead of the outcome of the Federal Reserve policy announcement later in the day after some weak U.S. data clouded the outlook on the economic recovery.
EUR/USD edged down 0.09% to 1.1367, off Tuesday’s highs of 1.1422.
The dollar turned lower against the other major currencies on Tuesday after data showed that orders for durable goods unexpectedly dropped 3.4% in December, indicating that the slowdown in global growth is weighing on the manufacturing sector.
However, another report showed that U.S. consumer confidence jumped to the highest level in more than seven years this month, boosted by an improving labor market and lower gasoline prices.
Disappointing corporate earnings also weighed, amid fears that the stronger dollar was eroding corporate profits.
Investors were looking ahead to the outcome of Wednesday’s Fed meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy.
The U.S. was to release what would be closely watched preliminary data on fourth quarter economic growth on Friday.
In other trade, the dollar pushed higher against the yen, with USD/JPY up 0.25% to 118.13.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 94.35 after falling to almost one week lows of 93.95 in the previous session.