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Forex - Dollar holds steady ahead of Fed meeting, jobs data

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Investing.com - The dollar traded steady against most major currencies on Monday, edging lower on sentiments the Federal Reserve won't rush to taper stimulus programs though uncertainty over monetary policy in general supported the currency.

Investors snapping up safe-haven dollar positions ahead of the Fed's Wednesday announcement on monetary policy and Friday's July jobs report bolstered the greenback, sending it in positive territory periodically.

In U.S. trading on Monday, EUR/USD was down 0.09% at 1.3268.

The dollar rose earlier in the session amid growing sentiment that while the U.S. economy continues to improve, recovery is not going fast enough to prompt the Federal Reserve to rush to taper monetary stimulus programs such as its monthly USD85 billion bond-buying program.

While a decision to keep stimulus programs in place should keep the dollar weak by nature, the greenback saw demand on Monday due to its popularity as a safe-haven asset in times of uncertainty.

Elsewhere on Monday, the National Association of Realtors reported that pending home sales in the U.S. fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which added to the uncertainty surrounding the Federal Reserve.

Some viewed the data as positive enough to keep the Fed on track to wind down stimulus programs this year and open the door to a longer-term strengthening trend for the U.S. currency, which gave the greenback some support.

The dollar also rose amid demand from investors looking to spend the week in a safe and liquid asset class before the release of Friday's July jobs report, which could provide currency markets with fresh steering currents.

Later in the session, however, the greenback gave back earlier gains as investors opted for the yen to ride out uncertainty

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.19% at 1.5357.

The dollar was down against the yen, with USD/JPY down 0.58% at 97.73, and up against the Swiss franc, with USD/CHF trading up 0.19% at 0.9302.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.22% at 1.0255, AUD/USD down 0.63% at 0.9204 and NZD/USD trading down 0.63% at 0.8031.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 81.74.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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