The dollar experienced a marginally lower movement against several other currencies on Monday, April 29, when it hovered close to a 23-month high.
This happened even as the wider trader community held on for more data releases that should help cement the bullish sentiment in the greenback.
Major currencies continued to hold within tight ranges for the week as a host of factors ensured there was only light trading volume. In Asia, Japan is in the midst of a 10-day holiday, while China is set to have its three-day Labour Day celebrations from Wednesday to Friday.
Elsewhere, the Federal Reserve is expected to hold a policy meeting, while in Britain, negotiations on Brexit continue. Data releases from elsewhere, including that of U.S. payrolls, are likely to trigger major swings in global currencies as the week progresses.
Several surveys, including one that projected Brexit could harm the Sterling, are coming out of the U.S., Europe, and China. Such projects could also have a bearing on the direction of the major currencies.
Dollar index peaks
An index tracking the U.S. dollar against global currencies like the euro, Japanese yen, British pound, and others slipped by o.16% to reach 97.85 on Monday. The index had peaked at 98.330, last week, the highest it had moved for 23 months since it reached such levels in May 2017.
The EUR moved up by 0.32% to reach $1.1184, while USD managed 0.12% for 111.71 yen.
The dollar index’s move closed lower following news that consumer spending in the U.S. gained by 0.9% in March.
Traders are keen to get clues from the Fed regarding its global economic outlook although analysts have pointed out that there could be no change from FOMC officials on the earlier stance against raising interest rates for the rest of 2019.
On Friday, data by the government showed that the U.S. economy had by about 3.2% in Q1 this year. the growth in the leading economy’s gross domestic product (GDP) was largely due to a spike in two categories: inventories and exports.