The U.S. dollar was seen trading weaker on Tuesday. The weakness in the greenback comes ahead of today’s Fed meeting. However, the USD was seen managing to recover some of the losses later in the day.
Economic data on the day showed that the German Ifo business climate fell to 101.0. This missed estimates of 101.8 and was down from 102.0 previously.
Canada’s manufacturing sales were down 0.1% on the month missing the median forecasts and slowed from the 0.2% increase the month before. In the U.S. the building permits rose modestly to 1.33 million which beat the forecasts while housing starts rose 1.26 million on the month.
The UK’s inflation report for November is due today. Econplans for the next year.omists polled forecast that inflation might have eased to 2.3% on an annualized basis in November. This marks a somewhat slower pace of increase in inflation compared to the 2.4% that was registered in October. Core inflation is expected to also ease to 1.8%, down from 1.9% previously.
The NY trading session will see Canada’s inflation data coming out. Headline inflation is forecast to fall 0.1% after rising 0.3% on the month previously. The annualized inflation is expected to remain at 2.1%.
Later in the day, the housing data continues with the release of the existing home sales report. Existing home sales are forecast to rise just 5.2 million on the month down from 5.22 million previously.
The much-awaited Fed meeting will be underway as the FOMC will be hiking interest rates today to 2.50%. The central bank will also be releasing its economic projections and rate hike plans for the next year.
Following the Fed meeting, later in the overnight session, New Zealand will be releasing its quarterly GDP data. GDP is forecast to rise 0.6% in the third quarter, marking a slower pace of increase.
