The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 93.892
The dollar edged lower in early European trade Wednesday in calm trading ahead of next week’s Federal Reserve meeting, while the U.K. budget places sterling in focus.
The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 93.892 at 0630 GMT.
USD/JPY was 0.1% lower at 114.03, EUR/USD traded 0.1% higher at 1.1603, and the GBP/USD dropped marginally to 1.3763 ahead of Britain’s annual budget.
The Federal Reserve has now gone into a blackout period ahead of next week’s policy-setting meeting, and ahead of this traders are focusing on the release of a series of important data releases.
Wednesday sees the release of the September durable goods orders, but the third quarter Gross Domestic Product (GDP) release on Thursday and the September core PCE deflator on Friday will attract the most attention.
Elsewhere, AUD/USD increased 0.2% to 0.7513 after Australian core inflation increased at its fastest annual pace since 2015, prompting traders to price in earlier hikes in interest rates.
The headline consumer price index increased 0.8% in the third quarter and 3.0% for the year, much as expected, but the annual measure of core inflation accelerated to 2.1%, well above the 1.8% expected and putting it back in the RBA’s (Reserve Bank of Australia) 2% to 3% target range for the first time in six years.
Sterling could be vulnerable Wednesday as U.K. Chancellor of the Exchequer Rishi Sunak delivers his annual budget.
The pre-budget leaks have typically involved new spending plans rather than how this is going to be paid for. That does perhaps leave GBP a little vulnerable tomorrow should the UK Chancellor announce any kind of fiscal consolidation, analysts at ING said in a note.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.