The dollar remains stable in view of the Fed
Investing.com – The dollar remains stable on Monday against a basket of currencies, as markets awaited an upcoming federal Reserve meeting where it is expected to raise interest rates and offering clues on the monetary tightening for the rest of the year.
The dollar found some support after data on Friday showed that industrial production jumped in February, driven by strong increases in production in factories and mines.
A separate report showed that consumer sentiment rose in march.
The data corroborate a previous report according to which housing starts in the United States have declined more than expected last month.
Later in the week, the Fed is expected to greatly increase its rate by a quarter point at the conclusion of its policy meeting to two days. The investors will focus mainly on any indication as to the pace of monetary policy tightening for the rest of the year.
Investors, however, remain cautious, fearing that more senior officials of the administration Trump can be driven from the White House and are concerned about the economic impact of the us tariff.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, is maintained at 89,85, just after the peak of 90,38 two weeks on Friday.
The euro was stable, with EUR / USD at 1.2291, while GBP / USD gained 0.40% to trade at 1.3994.
The yen was also steady, with USD / JPY at 106.04, while USD / CHF has advanced 0.11% to 0.9531.
The appetite for risk has also been reached after prime minister Shinzo Abe has taken on the responsibility of a loss of confidence in the government in the face of a growing scandal that has not seen its popularity plunge, but has denied his involvement in the crony-in an agreement of land with a operator of school.
The scandal has raised concerns about the ability of Eba to continue its policy Abenomics, which include monetary easing aggressive.
Elsewhere, the australian dollar was lower, with AUD / USD down 0.09% to 0,7706 while the NZD / USD was almost unchanged at 0,7217.
During this time, the USD / CAD remains at 1.3097.