Forex Pros – The U.S. dollar was broadly lower against the other major currencies on Tuesday, as speculation over how much quantitative easing the U.S. Federal Reserve would introduce after its policy meeting ends on Wednesday continued. During European afternoon trade, the greenback was down against the euro, with EUR/USD soaring 0.90% to hit 1.4018. Earlier in the day, the euro zone’s October manufacturing PMI was revised up to 54.6 from 53.7 in September. The greenback was also down against the Swiss franc with USD/CHF tumbling 0.95% to hit 0.9822. But the greenback was up against the pound, with GBP/USD shedding 0.09% to hit 1.6020. Earlier in the day, data showed that the U.K. construction PMI fell significantly more-than-expected in October. The greenback was also up against the yen with USD/JPY climbing 0.28% to hit 80.73 after Japan’s finance minister said his government "will take decisive steps when necessary" to curb the yen’s sharp gains. The greenback was also down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.52% to hit 1.0098, AUD/USD jumping 1.34% to hit 1.0002 and NZD/USD surging 0.65% to hit 0.7720. Earlier in the day, the Reserve Bank of Australia unexpectedly raised its Official Cash Rate by a quarter of a percentage point to 4.75% amid concern that stronger growth will cause inflation to accelerate. It was the bank’s first rate increase in six months. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.65%. Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.

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