Investing.com - The U.S. dollar pushed higher against almost all of the other major currencies on Monday, as markets steadied after Friday’s risk rally, but the greenback’s gains were limited by growing expectations for more quantitative easing by the Federal Reserve.
During European morning trade, the dollar pulled back from a three-and-a half month low against the euro, with EUR/USD slipping 0.22% to 1.2787.
The dollar weakened broadly on Friday after the Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The disappointing data increased the chances that the U.S. central bank will implement further stimulus measures to strengthen the economic recovery, ahead of its upcoming policy meeting.
Demand for the single currency also remained underpinned after the European Central Bank unveiled details of its bond purchasing program aimed at lowering the borrowing costs of peripheral euro zone members.
The euro was little changed after a report showed that investor confidence in the euro zone improved this month for the first time since March, largely due to optimism surrounding the ECB’s bond purchasing plan.
Sentix said its index of investor confidence improved to minus 23.2 in September from a reading of minus 30.3 in August, defying expectations for a reading of minus 30.7.
The greenback was fractionally higher against the pound, with GBP/USD inching down 0.09% to 1.5993.
Elsewhere, the greenback inched higher against the yen, with USD/JPY edging up 0.06% to 78.31 and gained ground against the Swiss franc, with USD/CHF rising 0.24% to trade at 0.9464.
Earlier Monday, revised data showed that Japan’s economy expanded by 0.2% in the second quarter, down from a preliminary estimate of 0.3% growth.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.05% to 0.9779, AUD/USD shedding 0.41% to trade at 1.0344 and NZD/USD down 0.28% to 0.8099.
In Australia, official data showed that home loan approvals fell by 1.0% in July, compared to expectations for a 0.1% increase, after a 1.0% decline in June.
Elsewhere, official data showed that China posted a wider-than-expected trade surplus in August as imports unexpectedly declined. China is Australia’s largest export destination.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to 80.47.
Trade was expected to remain subdued on Monday, as investors looked ahead to Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism, as well as the outcome of the Fed’s policy meeting on Thursday.
During European morning trade, the dollar pulled back from a three-and-a half month low against the euro, with EUR/USD slipping 0.22% to 1.2787.
The dollar weakened broadly on Friday after the Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The disappointing data increased the chances that the U.S. central bank will implement further stimulus measures to strengthen the economic recovery, ahead of its upcoming policy meeting.
Demand for the single currency also remained underpinned after the European Central Bank unveiled details of its bond purchasing program aimed at lowering the borrowing costs of peripheral euro zone members.
The euro was little changed after a report showed that investor confidence in the euro zone improved this month for the first time since March, largely due to optimism surrounding the ECB’s bond purchasing plan.
Sentix said its index of investor confidence improved to minus 23.2 in September from a reading of minus 30.3 in August, defying expectations for a reading of minus 30.7.
The greenback was fractionally higher against the pound, with GBP/USD inching down 0.09% to 1.5993.
Elsewhere, the greenback inched higher against the yen, with USD/JPY edging up 0.06% to 78.31 and gained ground against the Swiss franc, with USD/CHF rising 0.24% to trade at 0.9464.
Earlier Monday, revised data showed that Japan’s economy expanded by 0.2% in the second quarter, down from a preliminary estimate of 0.3% growth.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.05% to 0.9779, AUD/USD shedding 0.41% to trade at 1.0344 and NZD/USD down 0.28% to 0.8099.
In Australia, official data showed that home loan approvals fell by 1.0% in July, compared to expectations for a 0.1% increase, after a 1.0% decline in June.
Elsewhere, official data showed that China posted a wider-than-expected trade surplus in August as imports unexpectedly declined. China is Australia’s largest export destination.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to 80.47.
Trade was expected to remain subdued on Monday, as investors looked ahead to Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism, as well as the outcome of the Fed’s policy meeting on Thursday.