The U.S. Dollar trades lower against its major rivals

The U.S. Dollar traded lower against its major rivals yesterday, as world currency sentiment strengthened ahead of highly anticipated policy meetings by the Federal Reserve and the European Central Bank this week.

Months of weaker than expected economic indicators in the US, ranging from a 1.5% second-quarter GDP growth rate to a slew of dismal monthly jobs reports, have fueled talk that the Fed will roll out a new round of bond purchases from banks, a monetary stimulus tool known as quantitative easing that weakens the Dollar to spur recovery and hiring.

The central bank will decide August’s interest rates and asset purchase targets, which economists expect both to remain unchanged. The British Pound did not significantly move against the US Dollar following the housing prices release.

UK Housing prices have added to signs of a struggling economy, sliding to 0.7% in July. This comes as Moody’s lowered their growth forecast for the UK in 2012 to 0.4%.  The BoE’s £80 billion funding for the lending scheme opened today, which is seen as a program that could potentially increase credit and stimulate the British economy.

Today's Fundamentals

07.00 GBP Nationwide House Prices n.s.a. (YoY) (JUL)

08.55 EUR German Purchasing Manager Index Manufacturing (JUL F)

09.30 GBP Purchasing Manager Index Manufacturing (JUL)

11.30 EUR Italian Monti Meets Rehn, Katainen in Helsinki

13.15 USD ADP Employment Change (JUL)

13.58 USD Markit US PMI Final (JUL)

15.00 USD ISM Manufacturing (JUL)

15.00 USD Construction Spending (MoM) (JUN)

18.15 USD Federal Open Market Committee Rate Decision (AUG 1)

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