Forex - Dollar holds steady ahead of FOMC decision
Investing.com
Published Jun 14, 2017 05:23AM ET
Dollar little changed vs. rivals, eyes on Fed
Investing.com - The dollar held steady against other major currencies on Wednesday, as investors remained cautious ahead of the Federal Reserve’s highly-anticipated rate decision and amid ongoing political woes in the U.S.
EUR/USD was little changed at 1.1208.
Later Wednesday, the Fed was widely expected to raise interest rates by 25 basis points from 1.00% to 1.25%.
Market participants were especially awaiting Fed Chair Janet Yellen’s comments following the decision for indications on the future pace of rate hikes.
Investors were also cautious as more than 190 Democratic lawmakers sued President Donald Trump accusing him of receiving funds from foreign governments through his firms and thus of violating the constitution.
GBP/USD fell 0.19% to 1.2730, off session highs of 1.2797 after the U.K. Office for National Statistics said the claimant count increased by 7,300 in May, compared to expectations for a gain of 20,300 people.
The unemployment rate was unchanged at 4.6% in April, in line with expectations and at its lowest level since 1975.
The report also showed that the average earnings index rose by 2.1% in the three months to April, missing forecasts for a 2.4% increase. Excluding bonuses, wages rose by just 1.7%.
Meanwhile, political uncertainty persisted in the U.K., with Prime Minister Theresa May facing calls to soften her stance on Brexit days before negotiations on leaving the EU begin.
May was set to resume talks with Northern Ireland's Democratic Unionist Party (DUP) on a deal to secure their support in parliament after the Prime Minister failed to win an outright majority in last week's election.
USD/JPY added 0.12% to 110.19, while USD/CHF was almost unchanged at 0.9689.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.54% at 0.7579 and with NZD/USD gaining 0.37% to 0.7251.
Meanwhile, USD/CAD shed 0.29% to trade at 1.3202.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.99.
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Written By: Investing.com
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