US Dollar Rises Against Sterling, Euro Ahead of FOMC Minutes
The US dollar rose against its major trading partners early Wednesday before a busy data schedule, starting with ADP private payrolls data for December. The details of December’s FOMC will be released in today’s minutes, which could throw a bit more support behind the dollar.
The dollar is receiving some fresh support from data, particularly from the spike in the ISM services prices paid sub-index in December, ING said in a note. Francesco Pesole, ING analyst, said markets have been tempted in the past couple of days to believe there is some truth behind the Washington Post’s report—quickly rebuked by Trump—that US tariffs will be only on selected products.
Earlier Wednesday, the Mortgage Bankers Association said a further uptick in mortgage rates pushed mortgage applications lower in the week ended Jan. 3. A quick summary of foreign exchange activity heading into Wednesday showed that USDEUR fell to 1.0294 from 1.0345 at the Tuesday US close and 1.0411 at the same time Tuesday morning.
Eurozone consumer confidence and business sentiment both declined in December, while producer price growth was stronger than expected in November, according to data released earlier Wednesday. The next European Central Bank meeting is scheduled for Jan. 30.
GBPUSD fell to 1.2362 from 1.2481 at the Tuesday US close and 1.2542 at the same time Tuesday morning. UK mortgage rates declined in December, data released earlier Wednesday showed. The next Bank of England meeting is scheduled for Feb. 6.
USDJPY rose to 158.4052 from 157.8653 at the Tuesday US close and 157.7637 at the same time Tuesday morning. Japanese household confidence declined in December, according to data released overnight. The next Bank of Japan meeting is scheduled for Jan. 23-24.
USDCAD rose to 1.4385 from 1.4359 at the Tuesday US close and 1.4317 at the same time Tuesday morning. Canadian consumer sentiment data for January are due to be released. The next Bank of Canada meeting is scheduled for Jan. 29. #US Dollar Rises Against Sterling, Euro Ahead of FOMC Minutes FG Commissions Two 63MVA, 132/33KV Mobile Substations
