Investing.com - The dollar moved lower against a basket of other
major currencies on Monday as the euro gained ground ahead of euro
zone inflation data later in the week , and the pound surged to
EUR/USD touched highs of 1.3876, the most since April 11 and was
last up 0.22% to 1.3864.
The euro was supported by hopes that Wednesday's report on euro
zone inflation would show that consumer prices ticked higher this
month, easing pressure on the European Central Bank to implement
additional monetary policy measures.
The single currency received an additional boost after ECB
Governing Council member Christian Noyer said Monday that while the
strong euro was weighing on consumer prices the euro area was not
at risk of falling into deflation.
Meanwhile, sterling rose to fresh four-and-a-half year peaks of
1.6853 against the dollar, and GBP/USD was last up 0.22% to
Demand for the pound continued to be underpinned by expectations
that the Bank of England could raise interest rates in the early
part of next year.
Market participants were looking ahead to preliminary data on
U.K. first quarter growth due for release on Tuesday, amid
expectations that growth accelerated in the first three months of
Sterling was also boosted by expectations for merger and
acquisition inflows after U.S. drugs giant Pfizer Inc (NYSE:PFE)
confirmed Monday that wanted to take over Britain's Astrazeneca Plc
(AZN.LONDON) in a deal worth almost £60 billion.
Elsewhere, USD/JPY was up 0.16% to 102.34, ahead of monetary
policy statements by the Bank of Japan and the Federal Reserve
later in the week. The BoJ was expected to keep the size of its
stimulus program unchanged, while the Fed was expected to stick to
its current timetable for tapering its asset purchase program.
Meanwhile, Friday's U.S. nonfarm payrolls report for April was
expected to indicate that the recovery in the labor market is
USD/CHF was down 0.42% to trade at 0.0.8778.
The Australian dollar was higher, with AUD/USD rising 0.22% to
0.9289, while NZD/USD slipped 0.23% to 0.8559. The Canadian dollar
was slightly higher, with USD/CAD losing 0.17% to trade at
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was at
79.65, down 0.23%.
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