Forex – Dollar Remains Broadly Lower with Fed in Focus

Dollar index still on the downside in cautious trade – The U.S. dollar remained broadly lower against other major currencies on Wednesday, as investors remained cautious ahead of the Federal Reserve’s monthly policy decision due later in the day.

The greenback moved lower following U.S. President Donald Trump’s first State of the Union address late Tuesday.

Amid positive comments on what the U.S. President described as a “New American Moment” characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.

Trump also urged Congress to pass legislation to in new infrastructure spending.

Market participants were now looking ahead of the Fed’s monetary due later Wednesday, with hopes the central bank will give more hints on the pace of future rate hikes.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 88.80 by 05:15 a.m. ET (19:15 GMT), remaining within close distance of last week’s three-year lows of 88.25.

was up 0.40% at 1.2452, while held steady at 1.4137.

Earlier Wednesday, data showed that euro zone consumer price inflation rose by in January, in line with expectations and compared to a 1.4% advance in the prior month.

The yen was little changed, with at 108.73, while slid 0.43% to 0.9317.

Elsewhere, the Australian and New Zealand dollars were stronger, with up 0.17% at 0.8097 and with advancing 0.91% to 0.7397.

Meanwhile, declined 0.36% to trade at 1.2289.

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.