The US Dollar slipped in Asian trade as FX traders await the FOMC minutes which will show the outlook of the Federal Reserve’s voting members and gauge the possible timing of the next rate increase. The minutes could support the latest rhetoric from the various FOMC members who spoke earlier this week. On Monday, Loretta Mester of the Cleveland branch of the Federal Reserve said that, provided the US economic performance was maintained, was in favor of a rate hike. Patrick Harper of the Philadelphia Fed also said he’d support a rate hike at next March’s policy meeting, again, dependent upon economic data, including inflation and productivity.
As reported at 11:40 am (JST) in Tokyo, the EUR/USD was trading at $1.0547, a gain of 0.13%. The USD/JPY was down 0.25% to trade at 113.382 Yen, well off last week’s high of 114.955 Yen. The GBP/USD was up 0.21% at $1.2502.
French Election Draws Market Focus
The FX market is keenly watching the continuing debate over France’s presidential elections which has kept the Euro from making any long-lasting strides. Overnight, the EUR/USD fell to $1.0526 and analysts are mindful that the pair could break $1.05215, the February 15th trough. France will hold its first round of elections on April 23rd and the concern is that the anti-EU party, with Marine Le Pen at the head, seems to be taking the lead over centrist and conservative rivals. Elections notwithstanding, the latest PMI reports which beat analysts’ expectations are providing some temporary support for the Euro.