By Jim Cote
Chicago, June 26 (BridgeNews) - The U.S. dollar continued to dip on increasing talk Wednesday's Federal Open Market Committee policy meeting will yield a 50-basis-point cut. Before giving back gains, the euro advanced to a nine-day high of 86.50 cents to the dollar in early trade as trend-buying continued to boost the euro. Despite a slumping economy, the Japanese yen rose against the dollar on hopes for Prime Minister Junichiro Koizumi's reform plan.
Expectations for a 50 basis point cut to the Fed funds rate on Wednesday have grown as analysts say the Fed believes it better to overshoot on the easing side rather than take baby steps of 25 basis points and risk recession.
Tuesday's domestic economic agenda focuses on the Conference Board's June consumer confidence report. Thus far, U.S. consumer confidence has remained relatively strong helping to prevent an economic recession. The intraday outlook is for choppy trade ahead of Wednesday's Federal Open Market Committee policy meeting, although a big drop in consumer confidence could cause volatility.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 123.77 123.80 -0.03 123.28 123.93
EUR/USD 0.8607 0.8591 0.0016 0.8587 0.8650
EUR/JPY 106.55 106.38 0.17 106.25 106.98
GBP/USD 1.4119 1.4131 -0.0012 1.4106 1.4147
USD/CHF 1.7663 1.7694 -0.0031 1.7585 1.7701
USD/CAD 1.5180 1.5178 0.0002 1.5165 1.5193
AUD/USD 0.5180 0.5170 0.001 0.5165 0.5206
NZD/USD 0.4159 0.4128 0.0031 0.4130 0.4179
SP.1 1211.00 Bridge N/A -12.50 1203.50 1223.60 ND.1 1712.50 Bridge N/A -44.50 1680.00 1758.50