Article by ForexTime

The dollar fell to nearly two-week lows against the euro and Swiss franc, pressured by a report that said the Federal Reserve was unlikely to change its dovish stance on near-zero interest rates at a two-day policy meeting that ends on Wednesday. On Tuesday, multiple traders cited the Wall Street Journal video for the dollar’s sell-off.

The video said the Fed’s statement is likely to keep the phrase “considerable time” regarding the time frame as to when the U.S. central bank will start raising interest rates. The euro rose 0.13 percent to $1.2957, after hitting a peak of $1.2994, the highest since Sept 4. Still the euro has remained confined in a $1.2859-$1.2980 range since the fading of a selloff sparked by a European Central Bank interest rate cut early this month. Against the Swiss franc, the dollar fell 0.27 percent to 0.9326 franc. Earlier, it dropped to 0.9302, the dollar’s lowest level since Sept. 5.

The dollar was unchanged against the yen at 107.16 yen. The dollar index dipped 0.23 percent at 84.07.

Data on Tuesady showed that U.S. consumer prices likely held steady last month, with the so-called core CPI gaining a modest 0.2 percent. That would keep the year-on-year gain in the core gauge steady at 1.9 percent, while pulling the gain in the headline index down to the same level. The National Association of Home Builders releases its housing index for September, which analysts expect has increased by one point to 56.0 from the prior month. The Mortgage Bankers Association releases its weekly Mortgage Market Index which had a prior reading of 327.2. Separately, the commerce dept. issues second-quarter current account data. Meanwhile, the Cleveland Fed issues median CPI for August which was 0.1 percent in July.

Today markets will focus on the FOMC and speech by Chair Janet Yellen.

Article by ForexTime

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