The Federal Reserve’s trade- weighted dollar index fell to a record last week on speculation the central bank will discuss ways to keep yields low.
The U.S. Trade Weighted Major Currency Index, measuring the dollar’s performance versus seven currencies, dropped for a sixth week before an industry report that may show U.S. home prices slid for a fifth month. Fed policy makers, who begin a two-day meeting today, may consider measures to support the economy as the end of its $600 billion asset-purchase program approaches in June.
S&P/Case-Shiller’s index of home values in 20 U.S. cities fell 3.3 percent in February from a year earlier, the biggest 12-month decrease since November 2009, according to the median forecast of 25 economists surveyed by News.
The U.S. central bank will likely keep the benchmark interest rate in a range of zero to 0.25 percent through year- end, according to a Bloomberg News survey of economists. Fed Chairman Ben S. Bernanke is scheduled to speak to reporters after this week’s policy meeting.
EUR/USD: the pair shown low in the field of $1,4490 then grown in around $1,4600.
GBP/USD: the pair shown low in the field of $1,6430 then above $1,6500.
USD/JPY: the pair bargained within the limits of Y81,60-Y82,00.
UK CBI monthly trends at 1000GMT ahead of US Redbook retail sales at 1255GMT and US consumer confidence at 1400GMT the highlights though seen overshadowed by Wednesday's FOMC.