US Dollar Falls Against Major Currencies
The US dollar fell against its major trading partners early Monday, except for an increase versus the loonie or Canadian dollar, to start off a quiet week that will be broken up by the Christmas holiday on Wednesday.
A quick summary of foreign exchange activity heading into Monday showed that USDEUR rose to 1.0397 from 1.0361 at the Friday US close but was below a level of 1.0403 at the same time Friday morning.
There are no Eurozone data on Monday’s schedule. The next European Central Bank meeting is scheduled for Jan. 30.
GBPUSD rose to 1.2527 from 1.2497 at the Friday US close but was below a level of 1.2600 at the same time Friday morning. UK GDP was flat in Q3 according to data released overnight. The next Bank of England meeting is scheduled for Feb. 6.
USDJPY fell to 156.9391 from 157.3521 at the Friday US close but was above a level of 156.8572 at the same time Friday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for Jan. 23-24.
USDCAD rose to 1.4415 from 1.4394 at the Friday US close and 1.4374 at the same time Friday morning. Canadian GDP data for October and industrial and raw materials prices for November are due to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for Jan. 29.
The dollar has overtaken sterling as the best performing G-10 currency in the year to date as the Federal Reserve turns more cautious about cutting interest rates, Rabobank analysts say in a note. The Fed last Wednesday delivered a highly anticipated 25 basis points rate cut but signaled that the pace of cuts will slow.
The Bank of England left rates unchanged last Thursday, as expected, but three members voted for a rate cut.
Ahead of the two decisions, dollar positioning turned net long for the first time since Nov. 5 and sterling long positions fell in the week to Dec. 17, according to the latest data from CFTC. #US Dollar Falls Against Major Currencies#
