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Forex - U.S. Dollar Rises Ahead of Fed Minutes

Published 17/10/2018, 16:08
© Reuters.  The U.S. dollar rose on Wednesday.
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Investing.com - The U.S. dollar rose on Wednesday as traders waited for the latest meeting minutes from the Federal Reserve, while sterling was pushed lower over Brexit worries.

The U.S. dollar index, which tracks the greenback against a basket of other currencies, rose 0.34% to 95.10 as of 11:07 AM ET (15:07 GMT).

The meeting minutes from the Fed are released at 2:00 PM ET (18:00 GMT). The central bank took a more hawkish tone at its September meeting when it raised interest rates and dropped the word “accommodative” from its policy stance.

Expectations of a rate hike in December are priced in at around 80%.

U.S. President Donald Trump continued to criticize the central bank, saying on Tuesday it was his “biggest threat” because it was “raising rates too fast.”

Last week, Trump blamed an “out of control” Fed for Wall Street’s worst selloff since February.

Meanwhile building permits declined unexpectedly in September, adding to increasing concerns over the health of the U.S. housing sector in an otherwise stable economy.

The dollar rose against the yen, with USD/JPY decreasing 0.12% to 112.10.

Elsewhere, the pound was lower as uncertainty over whether Brexit negotiations will lead to a deal spooked investors. GBP/USD fell 0.39% to 1.3132. The euro was also lower, with EUR/USD dipping 0.40% to 1.1527.

The Australian dollar was lower, with AUD/USD down 0.32% to 0.7118, while NZD/USD decreased 0.06% to 0.6568 and USD/CAD increased 0.53% to 1.3002.

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