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Forex - Dollar edges higher, pound rises after BoE report

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Forex Pros - The U.S. dollar edged higher against most of its major counterparts on Wednesday, while the pound rallied after the Bank of England raised its medium-term inflation forecasts in its Quarterly Inflation Report.

During European afternoon trade, the greenback was higher against the euro, with EUR/USD shedding 0.32% to hit 1.4361.

Earlier in the day, Germany's deputy finance minister said that euro zone officials will debate Greece's debt crisis next week but no decision will be taken.

But the greenback was lower against the pound, with GBP/USD surging 0.74% to hit 1.6487.

Earlier Wednesday, the BoE indicated that interest rates would rise from the third quarter of 2011 to tackle high inflation.

Elsewhere, the greenback was higher against the yen and the Swiss franc with USD/JPY rising 0.40% to hit 81.18 and USD/CHF climbing 0.19% to hit 0.8815.

Meanwhile, the greenback was down against its Canadian counterpart but was slightly higher against its Australian and New Zealand cousins, with USD/CAD shedding 0.29% to hit 0.9538, AUD/USD dipping 0.03% to hit 1.0833 and NZD/USD sliding 0.17% to hit 0.7937.

Earlier in the day, Reserve Bank of New Zealand Governor Alan Bollard said the said the currency was "undesirably high" against the U.S. dollar.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07%.

Later Wednesday, the U.S. was to publish official data on its trade balance. In addition, the country was to publish government data on crude oil inventories and the federal budget balance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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