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Dollar rangebound as central banks eyed

Published 04/30/2013, 04:42 AM
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Investing.com - The dollar was rangebound against the other major currencies on Tuesday, as investors remained on the sidelines ahead of upcoming central bank meetings by the Federal Reserve and the European Central Bank.

During European morning trade, the dollar edged higher against the euro, with EUR/USD sliding 0.16% to 1.3076.

Sentiment on the single currency remained fragile ahead of Thursday’s ECB policy meeting, amid speculation over an interest rate cut.

Earlier Tuesday, official data showed that the number of people unemployed in Germany rose by 4,000 in March, above expectations for an increase of 2,000, while the country’s unemployment rate remained unchanged at 6.9%.

A separate report showed that Spain’s recession deepened in the first quarter as the economy contracted by 0.5%, in line with expectations.

The euro zone was to release data on the unemployment rate across the currency bloc later in the session.

The dollar was steady near two-and-a-half month lows against the pound, with GBP/USD dipping 0.03% to 1.5495.

Sterling was little changed after official data showed that U.K. net lending to individuals fell to GBP0.9 billion in March, below expectations for GBP1.3billion.

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.

The dollar was almost unchanged against the yen, with USD/JPY inching up 0.1% to 97.77.

Investors were looking ahead to the outcome of the Fed’s policy meeting on Wednesday for further cues on the direction of monetary policy after recent weak U.S. data dampened expectations for an earlier-than-expected end to the bank’s asset purchase program.

The dollar was fractionally higher against the Swiss franc, with USD/CHF edging up 0.08% to trade at 0.9371.

The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching up 0.01% to 1.0352, NZD/USD slipping 0.13% to 0.8553 and USD/CAD edging up 0.05% to 1.0118.

In New Zealand, official data showed that building consents dropped 9.1% in March, missing expectations for a 2.0% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% to 82.27.

The U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation latter in the trading day.




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