Investing.com - The euro remained modestly lower against the dollar on Wednesday after data showed that U.S. pending home sales unexpectedly fell in June, snapping five months of gains, as investors awaited the upcoming Federal Reserve rate statement.
EUR/USD was at 1.1038, off 0.19% for the day.
Demand for the dollar continued to be underpinned ahead of the Fed’s rate statement later in the day, which it was hoped would provide more clarity on the timing of an initial rate hike.
Investors were waiting to see if Fed policymakers will give any indication on the timing or pace of future interest rate increases.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The dollar shrugged off a report showing that contracts to buy previously owned U.S. homes unexpectedly fell in June, following five months of increases.
The National Association of Realtors said its pending home sales index fell 1.8% to 110.3 last month, compared to expectations for a 1.0% gain. It was still the third highest reading this year.
The dollar was slightly higher against the yen, with USD/JPY edging up 0.11% to 123.70.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last up 0.13% to 96.89.