Forex – Dollar Inches Higher Ahead of Fed Decision


© Reuters. Dollar rose against its rivals ahead of the Fed decision

Investing.com – The dollar rose modestly against its rivals amid mixed U.S. economic data on the labor market and manufacturing ahead of Federal Reserve’s policy decision.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.15% to 94.47.

showed a reading of 58.1 for July, missing expectations of 59.4. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

showed a reading of 56.5 for July, topping expectations of 56.0, supporting the narrative of a strong U.S. labor market as the private sector also saw strong job growth.

grew by 219,000 for July, rising from the 181,000 seen in June, according to a report released Wednesday by ADP and Moody’s Analytics. That beat economists’ forecast of 186,000.

The slew of economic data arrived just hours ahead of the Federal Reserve’s interest rate decision and accompanying monetary policy statement due 2 p.m. ET.

The Federal Open Market Committee is expected to vote to leave interest rates unchanged, but market participants are expected to closely parse the accompanying statement for any tweaks in language on monetary policy.

According to Investing.com’s , 97.9% of traders expected the Federal Reserve to stand pat on interest rates. That is slightly higher than the 96.9% seen a day earlier.

The dollar lost ground against the yen as the latter drew strength from a sharp uptick in Japan 10-year bond yields in the wake of the Bank of Japan’s decision Tuesday to permit long-term rates to fluctuate between zero and 0.2%, depending on economic and price developments.

fell 0.16% Y111.68 after trading as high as Y112.15

fell 0.05% to $1.3117 as traders looked ahead to the Bank of England’s rate decision on Thursday.

The Bank of England’s Monetary Policy Committee is widely expected to raise the 0.50% bank rate at Thursday’s meeting to 0.75%.

fell 0.21% to $1.1668 while fell 0.02% to C$1.3004.

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