As investors await the Federal Reserve Bank release of its latest protocol and minutes, the Dollar was pushed lower versus the Euro as traders ponder the possibility of a 2015 rate hike. Analysts are stressing that caution be exercised given the global uncertainty that likely weigh on the decision makers. That uncertainty is also giving a lift to safe haven assets, specifically the Japanese Yen and the Swiss Franc, which both edged higher against the greenback.
As reported at 11:42 am (BDT) in London, the EUR/USD was trading at $1.1312, a gain of 0.67% for the Euro. The USD/CHF was trading at 0.9665 Swiss Francs, down 0.73%. Meanwhile, the USD/JPY was lower 119.7450 Yen, a loss of 0.21%; any potential gains for the Japanese Yen were tempered by expectations that the Bank of Japan might add more stimulus later this month.
Central Bank Sentiment in Focus
If the Fed minutes, which will be released later today, reveal that the Fed’s FOMC is cautiously optimistic over the future outlook, then the Dollar could get a breather. The Dollar could also gain strength against the British Pound as the release of those minutes today could reveal a dovish bias on the part of the Bank of England’s MPC. Currently, the GBP/USD is trading $1.5352, a gain of 0.23%