Forex - Dollar steady ahead of Fed statement
Investing.com
Published Jul 29, 2015 20:34
Dollar steay as Fed statement eyed
Investing.com - The dollar was steady against the other major currencies on Wednesday, ahead of the Federal Reserve’s rate statement later in the day, which it was hoped would provide more clarity on the timing of an initial interest rate hike.
EUR/USD was at 1.1063, holding below Monday’s two-week highs of 1.1128.
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 U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter after an unusually harsh winter.
Data on Tuesday showed that U.S. consumer confidence unexpectedly deteriorated this month as a less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment.
Other reports on Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.
USD/JPY was at 123.54, little changed for the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased to 96.71.
The dollar slipped lower against the Swiss franc and the pound, with USD/CHF sliding 0.17% to 00.9606 and GBP/USD up 0.15% to 1.5639.
The commodity linked currencies were broadly lower, with AUD/USD down 0.31% to 0.7312, nearing Tuesday’s six year lows of 0.7256, while NZD/USD was flat at 0.6680. USD/CAD edged up to 1.2935.
Volatility in Chinese equity markets has roiled the Aussie, because of the country’s strong trade links to China.
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Written By: Investing.com
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