Investing.com - The dollar traded mixed to lower against most
major currencies on Monday as investors digested data and Federal
Reserve comments while trying to predict when the Federal Reserve
will begin to taper its monthly asset purchases.
In U.S. trading on Monday, EUR/USD was up 0.24% at 1.3738.
Profit taking eroded the dollar's support stemming from Friday's
strong November jobs report.
The U.S. economy added 203,000 jobs in November, beating
expectations for a 180,000 increase and up from a downwardly
revised 200,000 rise the previous month.
In the private sector, 196,000 jobs were added last month compared
to expectations for a 180,000 rise, after an increase of 214,000 in
The report also said the U.S. unemployment rate fell to 7.0% in
November, from 7.3% in October, beating expectations for a downtick
Also on Friday, the preliminary Thomson Reuters/University of
Michigan consumer sentiment index increased to 82.5 in December
from 75.1 the previous month, far surpassing expectations for a
The data kept expectations firmly in place that the Federal Reserve
will begin scaling back its USD85 billion in monthly bond purchases
in the coming months, which weaken the dollar to spur recovery.
Earlier Monday, Fed St. Louis President James Bullard said the
chances of a Fed decision to taper asset purchases are growing now
that the labor market has shown improvement.
"A small taper might recognize labor market improvement while still
providing the Committee the opportunity to carefully monitor
inflation during the first half of 2014," Bullard said in prepared
remarks of a speech he delivered earlier.
"Should inflation not return toward target, the Committee could
pause tapering at subsequent meetings."
Many investors expect tapering to begin early in 2014, though some
have not ruled out the possibility of a start date beginning at the
Fed's Dec. 17-18 policy meeting, the uncertainty of which allowed
the dollar to weaken and stocks room to rise.
The greenback was down against the pound, with GBP/USD up 0.48% at
The dollar was up against the yen, with USD/JPY up 0.39% at 103.25,
and down against the Swiss franc, with USD/CHF down 0.17% at
The dollar was mixed against its cousins in Canada, Australia and
New Zealand, with USD/CAD up 0.04% at 1.0638, AUD/USD up 0.03% at
0.9106 and NZD/USD trading down 0.08% at 0.8277.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.15% at
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
Investing.com Stocks & Finance App