Forex — Dollar inches Higher, FOMC Eyed

© Reuters. – The dollar higher, the major currencies traded against a basket, as a better-than-expected data and expectations of bullish US economic growth lifted before the Federal Reserve’s upcoming decision on interest rates due Wednesday.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.20% to 94.64.

Private U.S. employers added 235,000 jobs in October, according to a report Wednesday released by ADP and Moody’s Analytics. Beat economists ‘ forecast of 200,000.

The Institute for Supply Management index posted a reading of 58.7 in October, missing expectations for a reading of 60.

The duo reports came only a few hours before the release of the Federal Open Market Committee policy statement, widely expected that the Fed members agreed on, leaves its main rate unchanged.

Analysts are expected to analyze carefully the instruction, to measure the sentiment on inflation, which is running further and further below the fed’s target rate of 2%.

The upward trend in the U.S. dollar weighed on the pound sterling, but the losses were locked in the middle of the data points to a rebound in UK manufacturing growth under expectations that the Bank of England to raise interest rates on Thursday lifted the mood.

GBP/USD lost 0.12% to $1.3266.

EUR/USD lost 0.17% to $1.1625, while EUR/GBP fell 0.06% to £0.8763.

USD/JPY rose 0.32% to Y114.01 as the yen came under pressure after the Bank of Japan left the beginning of this week of its massive stimulus programme unchanged.

USD/CAD around the flat to be traded at C$1.2879. The sentiment on the loonie has become negative recently, as data showing signs of weakness showed in the Canadian economy after the economic growth unexpectedly fell in August

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