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Dollar Up Slightly Ahead Of FOMC Minutes

Dollar Up Slightly Ahead Of FOMC Minutes
4/3/2012 1:28 PM ET

The dollar is currently holding steady versus the Euro Tuesday afternoon, ahead of the release of the FOMC minutes. The Federal Reserve is due to release the minutes of its March 13th meeting at 2 PM ET. The U.S. currency has improved slightly versus both the pound sterling and the Japanese Yen. The dollar's safe haven status is likely the reason for its gains, after a rough trading session for stocks.

The greenback has remained basically flat against the Euro today, hovering around $1.3330. This level is right around the middle of a 6-session trading range.

Eurozone factory gate inflation slowed less than expected in February due to rising oil prices. Producer price inflation moderated to 3.6 percent year-on-year in February from a revised 3.8 percent in January, Eurostat said Tuesday. Nonetheless, it stayed above the consensus forecast of 3.5 percent. On a monthly basis, the industrial producer price index climbed 0.6 percent, following a 0.8 percent gain in January. Economists had expected an increase of 0.5 percent.

The buck has climbed to $1.5955 versus the pound sterling Tuesday, after rebounding from a 4-month low of 1.6062 yesterday.

The construction sector in the United Kingdom expanded at the fastest pace in twenty-one months in March as new orders increased significantly, and companies became more optimistic about the outlook. A survey by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) Tuesday showed that the seasonally adjusted purchasing managers' index for the construction sector rose to 56.7 in March from 54.3 in February.

The British Chambers of Commerce said Tuesday that the economy is showing signs of improvement and may avoid a recession. Still, economic growth remains "weak," the industry group said. The BCC expects the economy to expand 0.3 percent in the first quarter of 2012, after suffering a 0.3 percent contraction in the fourth quarter.

The dollar has rebounded slightly from over a 3-week low of Y81.540 versus the Yen, to around Y82.150.

The monetary base in Japan was down 0.2 percent on year in March, the Bank of Japan said on Tuesday, coming in at 112.46 trillion yen. That follows the 11.3 percent annual surge in February.

U.S. factory orders rebounded in February following disappointing January statistics, according to figures released Tuesday by the Commerce Department. Commerce Department figures put the February estimate of new orders for manufactured goods at $468.4 billion, a 1.3 percent increase from January levels. While most economists had predicted a rebound following the 1.1 percent decline in January, many had hoped for a slightly more robust 1.5 percent increase.

by RTT Staff Writer

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