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Forex - Dollar Little Changed, Shrugs off Firmer NY Manufacturing Data

Published 04/15/2019, 02:17 PM
Updated 04/15/2019, 02:25 PM
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Investing.com - The U.S dollar was little changed on Monday as a better-than-expected regional manufacturing report and dovish remarks on monetary policy from Chicago Federal Reserve President Charles Evans failed to trigger a meaningful move in the greenback.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.05% to 96.55.

The Empire State manufacturing index rose 6.4 points in April to a reading of 10.10, the New York Federal Reserve said Monday. That beat estimates for a reading of 6.70.

"The Empire State headline bounced in April to a 4-month high of 10.1 from a 2-year low of 3.7 in March ... leaving solid growth prospects for the Q2 factory sector that bucks the market’s fears earlier in the year," Action Economics said in a note.

The report arrived as Chicago Federal Reserve President Charles Evans, one of the dovish voters on the Fed's rate-setting committee, said he expected the central bank to remain on pause until the fall of 2020.

“I can see the funds rate being flat and unchanged into the fall of 2020,” he said Monday during a television interview on CNBC. “For me, that’s to help support the inflation outlook and make sure that it’s sustainable at two or a little bit above; that would be fine, too.”

Evans' remarks come as President Donald Trump launched a fresh onslaught on the Fed, accusing the central bank of not doing its job properly in its pursuit of quantitative tightening strategies.

"Quantitative tightening was a killer, should have done the exact opposite!," Trump said in a tweet.

GBP/USD rose 0.10% to $1.3094 amid a lack of Brexit-related news and top-tier economic data.

EUR/USD rose 0.02% to $1.1304 and USD/JPY rose 0.01% to Y112.02.

USD/CAD climbed 0.36% to C$1.3368, with the loonie coming under pressure on falling U.S. oil prices after Russia’s finance minister said Russia and OPEC may decide to boost production to protect market share amid a ramp up in U.S. crude output.

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