Dollar slips vs rivals as FOMC decision looms; Eurozone CPI supports euro
On Wednesday the greenback edged lower against its rivals, as markets were nervous ahead of the Federal Reserve's policy statement, though analysts do not predict major changes.
However, markets await cues on the timing of the rate hike. Interest rates in the U.S. have remained close to zero since late 2008.
EUR/USD climbed 0.27% to 1.1276 after data showed that consumer price inflation (CPI) in the euro area rose by 0.3% in May, matching expectations and unchanged from a preliminary estimate. April's inflation in the eurozone was flat.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, rose by 0.9% last month, in line with an initial estimate and up from 0.9% in April.
The gains in the euro were limited though, as markets were jittery amid uncertainties in Greece.
As the Guardian reports, Greece's Prime Minister Alexis Tsipras, speaking at a press conference with Austrian chancellor Werner Faymann, said:
“We have only one option and that is to find a solution that will be accepted and passed by the government and the parliament.....
If we do not have an honourable compromise, we will once again say the big no.”
Sterling was also higher, with GBP/USD up 0.55% to 1.5733.
The British currency was higher after the Office for National Statistics said that the average weekly earnings, including bonuses, rose by 2.7% on a year-over-year basis in the three months to April, up from an annualized 2.3% in the previous three month period.
The number of people out of work between February and April fell by 43,000 to 1.81 million.
The total number of employed people is 31.05 million people, which is 114,000 more compared with the previous three month period, BBC News reported.
The minutes of the Bank of England’s June meeting signaled that officials voted to keep rates unchanged at a record low 0.5%.
The dollar was lower vs the Swiss franc and higher against the yen.
USD/CHF was lower 0.62% to trade at 0.9267.
USD/JPY added 0.47% to settle at 123.94.
