Dollar slips lower vs. other majors with U.S. data, Fed meeting on tap
The dollar slipped lower against the other major currencies on Tuesday, as investors eyed the outcome of Wednesday’s Federal Reserve meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy, while markets also awaited upcoming U.S. data.
EUR/USD gained 0.34% to 1.1275, pulling away from Monday's lows of 1.1099, the weakest since September 2003. The pound was steady against the dollar, with GBP/USD at 1.5078. Earlier Tuesday, the Office for National Statistics reported that U.K. gross domestic product expanded by 0.5% in the final three months of 2014, below forecasts for growth of 0.6%. The U.K.’s economy grew by 0.7% in the previous quarter. Year-over-year, U.K. economic growth grew 2.7% in the three months ending December, missing expectations for a gain of 2.8%. The U.K. economy expanded at an annualized rate of 2.6% in the third quarter of 2014.
The dollar slipped lower against the other major currencies on Tuesday, as investors eyed the outcome of Wednesday’s Federal Reserve meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy, while markets also awaited upcoming U.S. data.
EUR/USD gained 0.34% to 1.1275, pulling away from Monday's lows of 1.1099, the weakest since September 2003. The pound was steady against the dollar, with GBP/USD at 1.5078. Earlier Tuesday, the Office for National Statistics reported that U.K. gross domestic product expanded by 0.5% in the final three months of 2014, below forecasts for growth of 0.6%. The U.K.’s economy grew by 0.7% in the previous quarter. Year-over-year, U.K. economic growth grew 2.7% in the three months ending December, missing expectations for a gain of 2.8%. The U.K. economy expanded at an annualized rate of 2.6% in the third quarter of 2014.
Swiss franc lower in volatile trade amid intervention talk
The Swiss franc fell against the euro and the dollar in choppy trade on Tuesday, reversing a rally earlier in the day amid speculation that the Swiss National Bank was intervening in the market to weaken the currency.
EUR/CHF was last down 0.51% to 1.0098 after rising as high as 1.0382 earlier. The pair had rallied more than 3% on Monday. The euro has been floating freely against the Swiss franc since Switzerland’s central bank scrapped its three year old 1.20 per euro exchange rate cap on January 15. The move came as prospects of quantitative easing by the European Central Bank to combat the threat of deflation in the euro area increased pressure on the Swiss franc. The ECB unveiled €60 billion a month government bond purchasing program on January 22. The euro is still approximately 16% lower against the franc since the SNB’S policy change. USD/CHF was down 0.49% to 0.8982, after rising as high as 0.9166 earlier.
The Swiss franc fell against the euro and the dollar in choppy trade on Tuesday, reversing a rally earlier in the day amid speculation that the Swiss National Bank was intervening in the market to weaken the currency.
EUR/CHF was last down 0.51% to 1.0098 after rising as high as 1.0382 earlier. The pair had rallied more than 3% on Monday. The euro has been floating freely against the Swiss franc since Switzerland’s central bank scrapped its three year old 1.20 per euro exchange rate cap on January 15. The move came as prospects of quantitative easing by the European Central Bank to combat the threat of deflation in the euro area increased pressure on the Swiss franc. The ECB unveiled €60 billion a month government bond purchasing program on January 22. The euro is still approximately 16% lower against the franc since the SNB’S policy change. USD/CHF was down 0.49% to 0.8982, after rising as high as 0.9166 earlier.
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