Dollar in holding pattern ahead of Fed meeting

© Reuters. The dollar remained in period of consolation ahead of Fed rate decision

Investing.com – The dollar traded flat against a basket of major currencies on Tuesday, as investors anticipated that the Federal Reserve would leave its benchmark rate unchanged on Wednesday.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.01% to 98.99 by 18:10 EDT.

In what was a quiet day for top-tier economic data release, the dollar remained in period of consolidation, as investors seemed hesitant to initiate large dollar positions, as the Federal Reserve Open Market Committee (FOMC) commences its two day meeting, ahead of an interest rate decision, scheduled for Wednesday.

Economists’ forecast that the Fed will leave its benchmark rate but investors are likely to parse through the Federal Reserve statement for any hints concerning a June rate hike.

According to investing.com’s , 62.4% of traders expect the Federal Reserve to hike interest rates in June.

Elsewhere, the final round of the French election, scheduled for Sunday May 7, offset weaker than expected economic data as current polls predict an easy victory for pro-EU candidate Emmanuel Macron.

continued its march higher to $1.0911, up 0.12%, while sank 0.22% to 0.8441, despite the release of bearish economic data, which showed an uptick in Eurozone and a slowdown in .

Meanwhile, rose to $1.2923, as investors cheered the release of bullish UK manufacturing data, which spiked to a three-year high.

The Markit/CIPS UK manufacturing Purchasing Managers’ Index (PMI) rose to 57.3 from 54.2 in March, economists’ expectations,

rose 0.24% to 112.11, as the greenback continued its recent rally against its yen counterpart, after investors abandon the flight to safely trade amid falling geopolitical tensions over North Korea.

traded at $1.3732, up 0.38%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments