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Dollar holds steady ahead policy statement the Fed

The dollar was steady against major currencies on Wednesday as investors remained cautious ahead of the next policy decision of the Federal Reserve, due at the end of the day.

EUR / USD 0.16% to 1.1003.

While most investors expect the Fed to leave its monetary policy unchanged this week, they were waiting for clues on the timing of future rate increases.

The pound fell lower, with GBP / USD down 0.27% to 1.3098.

The Office for National Statistics UK had previously reported that gross domestic product increased 0.6% in the three months to June, above forecasts of 0.4% growth. Year after year, economic growth UK expanded 2.2% in the second quarter, well above the forecast expansion of 2.0%.

However, the data failed to boost optimism about the UK economy is as it is the final measure of growth prior to the UK June 23 referendum that led to the British decision to leave period the European Union.
According to a Bloomberg survey released Wednesday, the consensus expects the UK to contract by 0.1% in the third quarter.

Meanwhile, the USD / JPYclimbed 0.75% to trade at 105.42, off the minimum of a month and a half of 103.98 hit on Tuesday while USD / CHF remained stable at 0.9931.

The yen weakened following reports Prime Minister Shinzo Abe and his government will compile a stimulus package of nearly 28 zillion yen, or $ 265.3 billion to prop up the ailing Japanese economy. That would be bigger than previous reports of a possible headline figure of around 20 trillion yen.

Market players are also facing policy meeting the Bank of Japan later this week. The BOJ is expected that a more expansionary policy at the conclusion of its meeting on Friday, which could include a rate cut deeper into negative territory and purchases of additional assets.

The dollars of Australia and New Zealand were lower, with AUD / USD down 0.28% to 0.7482 and NZD / USD down 0.16% at 0.7043 beating.

This morning, the Australian Bureau of Statistics said the consumer price index rose 0.4% in the second quarter, in line with expectations and after a fall of 0.2% in the three months to March.

Year after year, consumer prices rose 1.0% in the last quarter, compared with expectations for a 1.1% increase.Elsewhere, the USD / CAD was little changed at 1.3196, about four peak months of 1.3245 on Tuesday.

The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six major currencies, was steady at 97.23, hovering near four months of 97.62 on Monday.

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