Forex - Dollar mostly higher ahead of Fed commentary

Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday's Asian in what might be a sign that traders are expecting the Federal Reserve to comment on the end or tapering of its asset-buying activities when it concludes a two-day meeting later Wednesday. In Asian trading Wednesday, EUR/USD inched up 0.05% to 1.3401 as the euro continued to climb to multi-month highs against the greenback. The common currency got a lift Tuesday after data showed that the ZEW index of German economic sentiment improved to 38.5 in June from May's reading of 36.4. Analysts had expected the index to rise to 38.1. The report said the German economy is likely to slowly pick up speed in the second half of this year. USD/JPY added 0.19% to 95.53 as traders could be betting some tapering to the Fed's USD85 billion per month bond-buying program could arrive as soon as late in third quarter. On the other hand, an end to U.S. monetary easing could roil global financial markets when they are already fragile and send investors into the yen as a safe-haven play. GBP/USD fell 0.09% to 1.5631 after official data showed that the rate of consumer price inflation in the U.K. accelerated at a seasonally adjusted 2.7% in May, above expectations for a 2.6% increase and up from a seven month low of 2.4% in April. That data was released Tuesday. USD/CHF inched up 0.01% to 0.9202 while USD/CAD rose 0.19% to 1.0231. In U.S. economic news out Tuesday, the Labor Department said the U.S. consumer price index rose 0.1% last month after falling 0.4% in April. Economists expected a 0.2% increase. Excluding food and energy prices, the index was up 0.2% as expected. The Commerce Department said housing starts rose 6.8% in May to a 914,000 annualized rate from a revised 856,000 in April. Applications for single-family homes jumped to 622,000, the highest level in more than five years. AUD/USD fell 0.27% to 0.9462 while NZD/USD fell 0.15% 0.7980. The U.S. Dollar Index inched up 0.05% to 80.85.
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