Dollar Calm; Retains Strength Against Main Rivals

Forex - Dollar Calm; Retains Strength Against Main Rivals

By Ritu,

Capital Sands

The U.S. dollar was largely flat in European trading Monday, with the U.S. holiday providing little incentive for traders to take risks. That said, the greenback still looks strong against its main competitors.

At 03:35 ET (0835 GMT), the Dollar Index Futures, which tracks the greenback against a basket of other currencies, was essentially flat at 97.40. USD/JPY traded flat at 110.15, EUR/USD at 1.1095, up 0.1%, and GBP/USD at 1.2979, down 0.2%.

Figures released by the Commerce Department on Friday showed U.S. housing starts in December were well above economists’ estimates for 1.38 million and were the biggest gain in 13 years.

Retail sales were also on the rise and a gauge of manufacturing activity rebounded to its highest in eight months.

The positive data reduced chances that the Federal Reserve would slash rates when it meets later this month.

The European Central Bank and the Bank of Japan are also not expected to make any changes in their first policy meetings of the year this week, but the Bank of England is widely expected to cut rates in the near future.

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