The USD held on to modest gains Tuesday as equities and commodities declined. However, pressure on Dollar sentiment came following the FOMC Meeting Minutes. The Federal Reserve said Tuesday that officials believe the economy is going to recover at a slow rate while unemployment will remain high. These statements affirmed expectations the Federal Reserve will keep rates low for an extended period of time.
The Dollar Index, which tracks the greenback against a trade-weighted basket of six currencies, was at 75.116, compared with 75.130 Monday; remaining fairly directionless and within recent ranges against most major counterparts. The Fed's near 0% interest rates and monetary stimulus programs have weighed on the greenback this year, since the programs have effectively printed more Dollars and flooding the markets with extra currency.
Earlier in the day the USD received some support from disappointing U.S economic data. The U.S. economy's recovery wasn't as strong as earlier believed with Gross Domestic Product (GDP) rising at a 2.8% annual rate July through September after falling by 0.7% in the second quarter. This was a revision from a month ago, when the estimated was that GDP rose by an annual 3.5% in the third quarter. However, The Conference Board's U.S. Consumer Confidence Index improved to 49.5 in November from 48.7 in October, beating economists' expectations.
Looking ahead to today, another full news day is expected from the U.S with the Core Durable Goods Orders and Unemployment Claims due to be released at 13:00 GMT and the New Home Sales at 15:00 GMT.