The US dollar fell against most major currencies today as some of macroeconomic reports from China were good, buoying up investors’ confidence, and on speculations that the Federal Reserve may ease its monetary policy further.
The Fed will start the policy meeting today and will announce its decision tomorrow. Market participants hope that the US central bank will announce more asset purchases. Accommodative policy looks warranted considering the threat of the fiscal cliff. The Dollar Index ticked down 0.1 percent.
Some of China’s data fundamentals were bad, but there was good data too that bolstered good sentiment among Forex traders. Industrial production expanded 10.1 percent and retail sales grew 14.9 percent in November from a year ago.
EUR/USD rose from 1.2888 to 1.2935 and GBP/USD advanced from 1.6034 to 1.6071 as of 23:44 GMT today. USD/JPY went down from 82.50 to 82.35.
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