The U.S. Dollar slumped against most of its online Forex counterparts after data showed that business activity in the world’s biggest economy declined for the first time in over three years amid speculation the Federal Reserve would likely maintain the current asset-purchasing program. According to the Chicago Purchasing Manager’s Index, activity slipped to 49, which was the lowest since autumn of 2009.
Meanwhile, the Euro Forex currency rallied against the greenback on the possibility that any actions the European Central Bank takes when it meets on May 2nd will contribute to the region’s economic expansion. The Euro had dropped subsequent to a release indicating that consumer prices in the Euro-zone rose an annualized 1.2% in April.
Elsewhere, the British Pound sustained the largest monthly gain against the U.S. Dollar since October of 2011 after reports confirmed that British banks approved more loans for home purchases in March than expected, fueling further speculation that the economy is improving. However, the Sterling depreciated against the Euro as data revealed that consumer confidence fell last month.
In the South Pacific, Australia’s Dollar strengthened to the highest in close to two weeks versus the greenback as world currency market investors were waiting for the Federal Reserve’s two-day meeting to begin. The Aussie advanced further after Asian stocks rose and metrics denoted that the private sector’s credit climbed in March. The New Zealand Dollar, on the other hand, weakened following reports which showed that building approvals dipped unexpectedly.
Lastly, gold traded mixed in anticipation of the Federal Reserve’s Monetary Policy meeting.