The greenback advanced 0.1% in the index after reaching one of its highest peaks in the month of August.
He dollar hovers near recent highs this Monday as investors digest the weekend stimulus announcements China which some found disappointing, while the euro extends its decline ahead of a central bank meeting this week.
Meanwhile, the euro fell 0.1% to $1.092, falling for the 11th time in 12 sessions, as investors began to almost certainly price in a 25 basis point interest rate cut by the European Central Bank at its meeting on Thursday, as data pointed to a deterioration in activity in the euro zone.
On the other hand, it was unlikely that United States Treasury bonds would provide a significant advantage, as bond markets were closed for Columbus Day.
He dollar index rose 0.1% to 103.13, slightly below last week’s peak, which was the highest since mid-August, as traders reduced bets on further huge rate cuts by the Federal Reserve in their remaining policy meetings this year.
Last week’s US data showing slightly higher-than-expected consumer inflation but higher weekly claims unemployment left intact the predictions that the Fed cut rates by 25 basis points in November and December.
Traders will now have Thursday’s retail sales and jobless claims data on their radar in USA, In addition to the review of the monetary policy of the ECB.
The governor of the Federal Reserve, Christopher Waller supporter of a larger rate cut because he is concerned that the pace of price increases is below the target of the Federal Reserve, will speak later this Monday.
Eye on China
For their part, transactions in Asia were dominated by the press conference on fiscal stimulus of Beijing. The Chinese yuan fell 0.4% against the dollar.
Without providing details on the size of the fiscal stimulus being prepared, the finance minister, Lan Foan, He told a news conference that there will be more “countercyclical measures” this year.
“More time may be needed to take more thoughtful and specific measures,” he said. Christopher Wong currency strategist at OCBC in Singapore. “But those measures must also come quickly, as markets are eagerly awaiting them. Excessive expectations in the face of insufficient results would result in disappointment,” he added.
Source: Ambito
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