The U.S. Dollar weakened against most of its money market counterparts after the Federal Reserve announced it will continue with its bond-purchasing program and will maintain the current pace of buying up $85 billion in assets per month until the economy shows signs of recovery. The committee indicated that it will raise or cut the pace should the economy warrant it.
Meanwhile, the U.S. Institute for Supply Management showed that the manufacturing purchasing manager’s index dropped in April while ADP, the Payroll Processor, indicated that private non-farm payrolls rose by 119,000, which came in below prior forecasts.
In other FX trading news, the Australian Dollar remained strong against the greenback as speculators increased their wagers that the Federal Reserve would adhere to its commitment to maintaining the current stimulus program. New Zealand’s Dollar also extended gains ahead of the Federal Reserve’s decision. Both currencies dipped after China revealed that factory production rose, however, the data suggested that the expansion took place at a slower pace than anticipated. China is the biggest trading partner for the two South Pacific countries and the metrics prompted a number of commodities to decline as investors were speculating that demand for certain items would slow down.
The British Pound advanced to an 11-week high against the U.S. currency after the U.K. confirmed that manufacturing contracted less than expected last month, reducing the possibility the Bank of England will increase stimulus.
Lastly, Gold Futures for June delivery fell to $1,446.15 a troy ounce on the Comex Division of the New York Mercantile Exchange.