The U.S. dollar strengthened against most of its major rivals Monday, shaking off last week’s weakness that followed the Federal Reserve’s dovish about-face.
The ICE U.S. Dollar Index
which measures the greenback against six major rivals, was 0.3% higher at 95.853. Last week, the index dropped 0.2% in its second down week in a row.
Dollar strength pervaded through the currency market, including major pairs like the euro and Japanese yen
The buck last fetched ¥109.89, up 0.4%, having earlier touched its strongest level since late December, according to FactSet.
meanwhile also grappled with weak eurozone producer price data. In December, the price index contracted 0.8% month-on-month, more than expected. On the year, the currency bloc’s PPI rose 3%, versus 3.2% expected.
The euro was last slightly weaker at $1.1434, versus $1.1459 late Friday in New York.
was among the worst performers at the start of the week, dropping to $0.7224 from $0.7250 late Friday In New York, after weaker-than-expected building permits data.
Early in the Australian Tuesday session, the country’s central bank is due for its first update of the year.
“The Reserve Bank of Australia may have to acknowledge some weakness in the housing market in its statement tomorrow, which is a cause for some concern, although personally I think it’s more likely that the big move comes on Friday with the release of the statement on monetary policy and its new forecasts,” said Marshall Gittler, chief strategist at ACLS Global.
In other central bank news, British pound
traders are looking ahead to Thursday, when the Bank of England’s first monetary policy meeting of the year takes place. Investors will likely also look for Bank of England Gov. Mark Carney’s assessment of the government’s navigation of Brexit.
In U.K. economic data, the CIPS construction purchasing managers index slipped to 50.6 in January, failing to meet consensus expectations of 52.2. For PMIs, a level above 50 denotes economic expansion.
Sterling was weaker, buying $1.3039, down from $1.3082.
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