Investing.com – The dollar was little changed against a basket of the other major currencies on Monday, holding above last week’s six-and-a-half month lows with U.S. financial markets closed for the Memorial Day holiday.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was almost unchanged at 97.37 by 10.47 ET, holding above last week’s low of 96.79, its weakest level since November 9.
Traders had a subdued start to the week with markets in the U.S, the UK and China closed for holidays.
Investors were looking ahead to Friday’s U.S. employment report, which was expected to show that conditions in the labor market remain solid.
A strong U.S. jobs report would cement expectations for a rate hike by the Federal Reserve at its next meeting in June.
Data on Friday showed that slowed less than initially thought in the first three months of the year. Gross domestic product grew at an annual rate of 1.2% in the three months to March, the Commerce Department said, up from an initial estimate of 0.7%.
It was still the weakest expansion since the first quarter of 2016, but economists think growth is likely to rebound sharply in the current quarter.
The dollar was steady against the safe haven yen, with at 111.31.
The traditional safe haven yen showed little reaction after fired what appeared to be a short-range ballistic missile early on Monday.
Investors remained in a cautious mood amid ongoing political concerns surrounding the Trump administration.
President Donald Trump and dismissed White House leaks as “fake news” on Sunday, following reports that Jared Kushner, his son-in-law and senior aide, sought to set up secret “back channel” communications with Russia before Trump took office.
The euro was a touch lower, with dipping to 1.1169 after setting a six-and-a-half month high of 1.1267 last week.
European Central Bank President said on Monday that inflation in the euro area remains subdued and still requires substantial stimulus, tempering expectations ahead of the banks upcoming meeting on June 8.
Recent signs of strength in the euro zone economy along with fading political risk have fueled speculation that the ECB could scale back its massive monetary stimulus program.
Meanwhile, sterling pushed higher, with adding 0.27% to 1.2833, recovering from the three-week low of 1.2774 hit on Friday.
Sterling weakened after an opinion poll showing that the Labor Party narrowed the gap on the ruling Conservative Party ahead of upcoming elections, adding to political risks surrounding .
Investors had been confident that British Prime Minister Theresa May would secure a strong win in the election, strengthening her hand in Brexit negotiations and allowing her to ignore lawmakers pushing for a hard Brexit.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.