Daily Afternoon Report 31.01.2018

The U.S. dollar remained broadly lower against other major currencies on Wednesday, as investors remained cautious ahead of the Federal Reserve’s monthly policy decision due later in the day.

The greenback moved lower following U.S. President Donald Trump’s first State of the Union address late Tuesday.

Amid positive comments on what the U.S. President described as a “New American Moment” characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.

Trump also urged Congress to pass legislation to stimulate at least $1.5 trillion in new infrastructure spending.

Market participants were now looking ahead of the Fed’s monetary policy statement due later Wednesday, with hopes the central bank will give more hints on the pace of future rate hikes.

EURUSD was up 0.40% at 1.2452, while GBPUSD held steady at 1.4137.

Earlier Wednesday, data showed that euro zone consumer price inflation rose by 1.3%in January, in line with expectations and compared to a 1.4% advance in the prior month.

Elsewhere the yen was little changed, with USDJPY at 108.73, while USDCHF slid 0.43% to 0.9317.

Meanwhile, the Australian and New Zealand dollars were stronger, with AUDUSD up 0.17% at 0.8097 and with NZDUSD advancing 0.91% to 0.7397.

USDCAD declined 0.36% to trade at 1.2289.