By: DailyForex.com
The US Dollar edged off recent highs as investors await the release of the Federal Reserve’s latest monetary policy mean to better assess the likely timing of a rate increase. Bets are growing that the improved economic data coupled with steadily rising new jobs figures will lead to a December rate hike. However, analysts believe that it would be prudent to temper optimism as the Fed could see an appreciating dollar as a concern which would weigh on the US economic outlook. A rising greenback would make American-made goods more expensive abroad and could dampen trade.
As reported at 10:53 am (GMT) in London, the EUR/USD was trading at $1.0673, a gain of 0.27% in daily trade; the pair ranged from $1.0631 at the low to $1.0695 at the high in today’s trading session. The GBP/USD was trading at $1.5229, a gain of 0.08%, not too far from the session peak of $1.5247.
Fed Officials Could Offer Clues
Besides the Fed’s FOMC minutes, several Federal Reserve officials will be offering their own view of the US Dollar’s future. Three key Fed members, including William Dudley, the vice chair and head of the New York branch of the central bank, will be speaking later today. Their insight, along with the release of October’s minutes, could help investors piece together a timeline for possible action.