Investing.com - The dollar traded lower on Monday on concerns
that a lukewarm March jobs report will mean dovish comments will
arise in the minutes of the Federal Reserve's March policy meeting
due for release on Wednesday.
In U.S. trading on Monday, EUR/USD was up 0.27% at 1.3740.
The dollar weakened as markets prepped for Wednesday's minutes
of the Fed's March meeting.
On Friday, data revealed that the U.S. economy added 192,000
jobs in March, below expectations for jobs growth of 200,000.
The U.S. unemployment rate remained unchanged at 6.7%, compared
to expectations for a downtick to 6.6%.
The numbers sparked expectations that even though the Federal
Reserve will continue to dismantle its monthly bond-buying program,
the pace at which it closes the program remains up in the air.
Fed asset purchases, which currently stand at $55 billion a
month, aim to drive recovery by suppressing long-term borrowing
costs, weakening the dollar as a side effect.
The euro, meanwhile, received a shot in the arm after ECB
policymaker Yves Mersch said earlier that while monetary
authorities are working on plans to purchase assets to steer the
euro zone away from deflationary purchases, such a program is not
required yet, while Governing Council member Ewald Nowotny made
Separately, Bundesbank President Jens Weidmann said that
monetary policy cannot solve the financial crisis, and urged euro
zone political leaders to enact fiscal and other reforms.
The comments came after ECB President Mario Draghi said last
week that unconventional monetary policy instruments may be
necessary to avert the risk of ongoing low inflation becoming
entrenched in the euro zone.
The dollar was down against the yen, with USD/JPY down 0.16% at
103.11, and down against the Swiss franc, with USD/CHF down 0.40%
The greenback was down against the pound, with GBP/USD down
0.20% at 1.6608.
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.09% at 1.0970, AUD/USD down
0.24% at 0.9270 and NZD/USD up 0.10% at 0.8608.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.26% at 80.35.
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