Euro changes little against dollar before Fed minutes

There was little movement in the dollar versus the euro in the run-up to the central bank’s release of its minutes on Tuesday, as investors were reluctant to place big bets before the meeting of the European Central Bank later in the week, reports Reuters.

Trading was referred to as quiet in the build-up to Easter, as the market focuses on March’s Federal Reserve minutes which could offer clues on policymakers’ likelihood to take additional steps to ease policy – a move which would weigh heavily on the greenback.

The ECB policy meeting takes place on Wednesday with analysts claiming an aggressive message from the bank about the importance of concentrating on quelling inflation rather than helping Europe’s financial system and economy out of crisis could give the euro a slight boost.

However, many investors were still trying to offload the euro as concerns increased about the eurozone’s fragile outlook and Spain’s high debt levels. The shared currency changed little versus the dollar at $1.3316, nearer the $1.3298 session low than the $1.3367 session peak.

Federal Reserve minutes expected later in the session are likely to indicate that a stand-by approach is being taken, with the Fed expected to issue a warning that tightening prematurely could prove to be risky, while remaining open-minded but uncommitted on further easing.