28 Apr 2015
USD falls ahead of FOMC statement
FXStreet (Córdoba) - The US dollar weakened broadly on Tuesday following another series of disappointing data and as investors prepare for the Fed verdict when it concludes its 2-day policy meeting on Wednesday.
US consumer confidence unexpectedly fell in April. This disappointing reading follows a string of weak indicators, including factory activity, industrial production and new home sales.
Investors will be closely watching the wording of the FOMC for clues about the timing of the lift-off. Worries that the US economy is slowing in the light of a series of soft data have pushed away expectations of a June rate hike, weighing on the dollar over the last weeks.
The US will also release Q1 gross domestic product figures on Wednesday, with consensus pointing to an annualized growth rate of 1.0%.
EUR/USD reached a 3-week high of 1.0989 amid broad USD softness but with the euro also supported by hopes Greece is moving closer to a deal that will assure another tranche of aid needed to avoid default and a Grexit after Prime Minister Alexis Tsipras sidelined Yanis Varoufakis in the negotiations team.
GBP/USD rallied more than 150 pips from daily lows, shrugging off a disappointing UK GDP reading, and reaching an 8-week peak of 1.5337. USD/JPY faced selling pressure but found support at the 118.75 area.
The Aussie, the Kiwi and the Loonie accomplished decent gains versus the greenback, supported by higher commodity prices.
Wall Street indexes closed higher, recovering from early losses. The S&P 500 added 0.3%, the DJIA rose 0.4% while the Nasdaq shed 0.1%.
US consumer confidence unexpectedly fell in April. This disappointing reading follows a string of weak indicators, including factory activity, industrial production and new home sales.
Investors will be closely watching the wording of the FOMC for clues about the timing of the lift-off. Worries that the US economy is slowing in the light of a series of soft data have pushed away expectations of a June rate hike, weighing on the dollar over the last weeks.
The US will also release Q1 gross domestic product figures on Wednesday, with consensus pointing to an annualized growth rate of 1.0%.
EUR/USD reached a 3-week high of 1.0989 amid broad USD softness but with the euro also supported by hopes Greece is moving closer to a deal that will assure another tranche of aid needed to avoid default and a Grexit after Prime Minister Alexis Tsipras sidelined Yanis Varoufakis in the negotiations team.
GBP/USD rallied more than 150 pips from daily lows, shrugging off a disappointing UK GDP reading, and reaching an 8-week peak of 1.5337. USD/JPY faced selling pressure but found support at the 118.75 area.
The Aussie, the Kiwi and the Loonie accomplished decent gains versus the greenback, supported by higher commodity prices.
Wall Street indexes closed higher, recovering from early losses. The S&P 500 added 0.3%, the DJIA rose 0.4% while the Nasdaq shed 0.1%.