FX round-up: Euro strengthens on the back of Fed minutes

The single currency edged lower against the US unit following the release of what traders dubbed a less dovish set of Fed minutes out in the evening.

In particular, market commentary focused on the fact that when they met on 17 and 18 March “several” rate-setters had been in favour of a June interest rate increase.

However, the fact that a “couple” of policymakers at the US central bank had come out in favour of a first rate rise in 2016 and that the policy meeting took place before the weak March employment report led some economists to question just how hawkish the minutes really had been.

Euro/dollar ended the day down by 0.38% to 1.0785.

German industrial orders unexpectedly fell in February, data from the Federal Statistics Office in Wiesbaden revealed, indicating the Eurozone’s powerhouse economy is still prone to shocks and external forces.

Late in the afternoon, ratings agency Moody’s reminded investors that Britain’s long-term sovereign credit rating could come under pressure given the risk of an exit from the European Union.

Cable finished the day 0.40% higher at 1.4879.

Dollar/yen drifted 0.14% lower to 120.128 after the Bank of Japan announced its decision to hold its monetary policy steady.