Dollar Holds Steady as Focus Turns to Fed Meeting
Investing.com - The dollar held steady on Monday, as it began to recover from Friday's losses caused by downbeat U.S. economic reports and as markets turned their attention to the Federal Reserve policy meeting this week.
The greenback had broadly weakend after data on Friday showed that U.S. industrial and manufacturing production unexpectedly fell in August.
In addition, the U.S. Commerce Department said retail sales unexpectedly fell by 0.2% in August.
Later this week, the Fed is expected to leave interest rates unchanged but it could give indications on when it plans to begin unwinding its balance sheet.
USD/JPY was up 0.51% at 111.39, while USD/CHF held steady at 0.9601.
Markets seemed to have recovered from news late Thursday that North Korea fired a missile over Japan into the Pacific Ocean. It was the peninsula's second missile launch over Japanese territory in just over two weeks.
U.S. President Donald Trump was set to address the United Nations for the first time this week and Pyongyang was widely expected to be on the agenda.
Elsewhere, EUR/USD was little changed at 1.1941, while GBP/USD slipped 0.21% to trade at 1.3564, just off a fresh 15-month peak of 1.3619 hit overnight.
Sterling remained broadly supported after Gertjan Vlieghe, an external member of the Bank of England's monetary policy committee, said that interest rates could rise “as early as in the coming months.”
The comments came after the BoE indicated in its policy statement on Thursday that interest rates could rise faster than expected amid accelerating inflation.
The Australian dollar was steady, with AUD/USD at 0.8009, while NZD/USD gained 0.22% to 0.7307.
Meanwhile, USD/CAD held steady at 1.2199.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 91.72 by 05:15 a.m. ET (09:15 GMT).
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