Investing.com - The dollar recovered from early session losses to trade slightly higher against a basket of major currencies on Monday, as sterling slipped, following news that Article 50 will be triggered next week, while a softer tone on protectionism from G20 financial leaders at the weekend weighed on upside momentum.
The dollar came under pressure in early morning trade, as events from last week continued to weigh on sentiment not least the Federal Reserve’s surprisingly dovish comments concerning the pace of the rate hikes this year.
The Federal Reserve last Wednesday, stuck to its previous forecast of two more rate hikes this year against expectations from market participants of three rate hikes.
Meanwhile, a policy statement from G20 financial leaders, heaped further pressure on the greenback, after the group of twenty dropped a pledge to keep global trade free and open from a policy statement at the weekend.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.02% to 100.16 by 13:08 EDT.
Elsewhere, the pound tumbled against the dollar, after Downing Street said UK Prime Minister, Theresa May, will officially notify the European Union (EU) next Wednesday that the UK is leaving the EU by triggering Article 50 – the legal process by which the UK leaves the EU.
GBP/USD slid 0.39% to $1.2346 while EUR/USD traded flat $1.0741.
Meanwhile, the dollar reversed early morning losses against the yen with USD/JPY 0.01% lower at 112.67 while USD/CAD rose 0.09% to $1.3359.