Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar hits 6-month highs before U.S. GDP, Fed

Published 07/30/2014, 06:31 AM
Updated 07/30/2014, 06:31 AM
dollar index at 6-month highs before U.S. GDP data, Fed statement

dollar index at 6-month highs before U.S. GDP data, Fed statement

Investing.com - The dollar rose to six-month highs against a basket of other major currencies on Wednesday ahead of a preliminary report on U.S. second quarter growth and the outcome of the Federal Reserve’s latest policy meeting later in the day.

The U.S. was to release the preliminary estimate on second quarter gross domestic product growth later Wednesday, which was to be followed by the conclusion of the Fed’s latest policy meeting later in the day.

Investors were also awaiting the U.S. nonfarm payrolls report for July on Friday.

The dollar has strengthened since Fed Chair Janet Yellen said earlier this month that interest rates could rise sooner if the recovery in the labor market continued.

The greenback received an additional boost in recent sessions as economic data indicated that the recovery is gaining traction. A report by the Commerce Board on Tuesday showed that U.S. consumer confidence rose to the highest level in seven years this month.

The euro was wallowing at eight month lows, with EUR/USD trading at 1.3401.

The euro remained under heavy selling pressure amid concerns over the divergence in monetary policy between the European Central Bank and its major peers.

Data on Wednesday showed that Spain’s economy grew by a stronger than forecast 0.6% in the second quarter of 2014, and expanded 1.2% on a year-over-year basis.

But a separate report showed that consumer inflation in Spain fell 0.6% in July, underling concerns over the threat of deflationary pressures in the euro area.

The euro zone was to release what would be closely watched data on consumer prices on Thursday.

USD/JPY was up 0.13% to 102.24, the highest since June 18, while USD/CHF touched six month highs of 0.9074.

Sterling edged down to one-and-a-half month lows, with GBP/USD dipping 0.05% to 1.6934.

The New Zealand dollar was also close to one-and-a-half month lows, with NZD/USD at 0.8507. The Australian and Canadian dollars were also weaker, with AUD/USD slipping 0.21% to 0.9363 and USD/CAD rising 0.15% to 1.0869.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 81.39, the most since early February.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.