The u.s. dollar remained virtually unchanged on Monday in Europe, a holiday in the United States, encouraging little traders to take risks. That said, the greenback still seems strong in the face of its main competitors.
At 10.45 am, the futures on the Dollar Index, which tracks the greenback against a basket of other currencies, was up less than 0.1% 97,440. USD/JPY was steady at 110,17, EUR/USD also 1,1087, and GBP / USD was down 0.3% to 1,2967.
Figures published by the Commerce department on Friday showed that housing starts in the United States in December were well above the estimates of economists to 1.38 million, and accounted for the largest increase in 13 years.
Retail sales were also rising and an indicator of manufacturing activity rebounded to its highest level in eight months.
The positive data reduced chances that the federal Reserve would reduce its rate when it meets later this month.
The European Central Bank and the Bank of Japan should not make any changes to their first policy meetings of the year this week, but the Bank of England could cut rates in the near future.
The dollar remains firm in the space G3, said analysts Chris Turner Petr Krpata and Francesco Pesole ING (AS:INGA) in a research note. “The discussions of a tax cut republican 2.0 could cement this trend – at least in the space G3. The weak macro-economic american seems to be less of a concern now, but the market will turn soon to the risks of electoral americans – in particular, whether (Elizabeth) Warren, or (Bernie) Sanders won the democratic nomination.”