FX round-up: Calm trading in cable amid US dollar weakness

Trading in sterling was relatively muted amid weakness in the US dollar - especially against the currencies of some of the main commodity exporters - on the heels of dovish remarks from Fed chair Janet Yellen in the previous session.

Euro/dollar was moving higher by 0.37% to reach 1.1366 as of 17:49GMT.

In an interview with Politico, ECB executive board member Benoit Coeure said he wasn´t bothered by strength in the euro following the central bank´s latest package of stimulus measures, placing emphasis on markets´ understanding the motives behind the ECB´s views.

Cable was steady on the day, trading up by just 0.08% to 1.4396, with the pound off by just 0.01% to 162.11 against the yen.

As regards the chances of Brexit, Chris Beauchamp at IG told Digital Look: "Our Brexit binary has been running a little while now, slowly getting more interest. Currently says UK will stay in, with chance being 65% to stay. As with the ScotRef, the client view here is much more clear than the polling view."

Dollar/yen meanwhile was drifting lower by 0.09% to 112.60.

Chicago Fed president Charles Evans added to the selling pressure on Wednesday, after he told CNBC he was projecting two more interest rate hikes in 2016, with a move as soon as April not particulary likely in his opinion.

Even a decision to raise rates in June might be "getting ahead of one´s self".

New Zealand´s dollar was again on the move versus the greenback, gaining 0.97% to 0.6914, alongside similar advances for the Aussie and Canada´s Loonie.

Further afield, the US dollar was under pressure versus Brazil´s real after the South American nation´s central bank only managed to place about one-sixth of the reverse swaps it had offered in an auction.

USD/BRL was losing 0.57% to 3.6180.

On Tuesday, Brazil´s largest political party, the PMDB, quit the governing coalition, piling the pressure on president Dilam Rousseff to step down.

Brazil´s congress was scheduled to vote on her impeachment in April.