Forexpros – The dollar traded lower against most major global currencies on Tuesday as investors sold and jumped to the sidelines ahead of Wednesday’s release of the minutes from the Federal Reserve’s August monetary policy meeting.
Talk that European policymakers may give Greece more time to push through fiscal reforms sent the euro and other higher-yielding currencies rising against the greenback.
In Asian trading on Tuesday, EUR/USD was up 0.09% at 1.2330.
Investors remained largely on the sidelines ahead of Wednesday’s release of the minutes from the Federal Reserve’s latest policy meeting
A string of solid economic indicators in the U.S. has lowered expectations for the U.S. central bank to roll out a new round of stimulus measures, which would weaken the dollar to spur recovery.
Consumer sentiment figures have surprised on the upside as have retail sales numbers, industrial production figures and other indicators.
The dollar should dip should the minutes reveal more calls for monetary stimulus among voting members than expected.
Meanwhile in Europe, Luxembourg Prime Minister Jean-Claude Juncker is due to visit Athens later this week and markets were optimistic European policymakers will adjust austerity requirements attached to bailout payments.
Greece has requested a two-year extension to make fiscal adjustments.
Elsewhere, the European Central Bank dismissed reports it was preparing to roll out a bond-buying program.
Der Spiegel reported over the weekend that the European Central Bank may decide to cap yields in eurozone sovereign debt markets at its September policy meeting.
The European Central Bank would carry out such a policy via buying sovereign bonds in the open market, though bank officials said such reports were misleading.
European Central Bank officials have said they would consider intervening in bond markets but only if governments agree to certain fiscal reforms.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.05% at 1.5718.
The dollar was down against the yen, with USD/JPY trading down 0.06% at 79.38, and down against the Swiss franc, with USD/CHF trading down 0.09% at 0.9721.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.05% at 0.9879, AUD/USD up 0.29% at 1.0476 and NZD/USD up 0.22% at 0.8104.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% at 82.46.
Investors will remain focused on Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting.
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