The world's reserve currency was slipping in value during the Wednesday trade session against the common currency of the European Union as policy makers with the U.S. Federal Reserve are likely to announce stimulus measures will not change for the remainder of this year, Bloomberg reports.
Once the Federal Open Market Committee adjourns two days of policy meetings on Wednesday, the body is forecast to state asset purchasing will remain through the end of this year. October job market data fell short of forecasts and inflation this month advanced the least since this past April.
"With expectations having settled on March or April for the start of tapering, there's little reason for the Fed to stick its neck out today," head of Group-of-10 currency strategy Adam Cole with Royal Bank of Canada in London told Bloomberg on Wednesday. "The bulk of currency managers' positioning is still located in long dollar-yen positions. That doesn't mean those positions have to unwind but that is a risk as we get to year-end."
The U.S. dollar fell roughly 0.2 percent against the euro but was hovering against the Japanese yen.
Trading was thin on Wednesday as analysts, investors and traders waited on the Fed statement, according to Reuters.
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