Dollar ends lower ahead of Fed's 2-day meeting
|The greenback ended the day lower against majority of its peers on Monday as investors remained cautious over what steps the Federal Reserve would take at the upcoming policy meeting, starting Tuesday.
Reuters reported China's top diplomat the Foreign Ministry urged the United States on Monday to remove all unilateral sanctions and tariffs as well as "long-arm jurisdiction" against China as soon as possible, Wang Yi, China's State Councillor and Foreign Minister, emphasized in a meeting with U.S. counterpart Wendy Sherman that the United States should not challenge, defame or try to overthrow China's system of socialism, the statement said.
Versus the Japanese yen, dollar met renewed selling at 110.58 at Asian open and dropped in tandem with U.S. yields to session lows at 110.13 in early European morning before rebounding to 110.42 at New York open due partly to cross-selling in jpy. Later, the pair retreated again to 110.16 in New York before stabilising.
The single currency traded with a firm bias in Asia and gained from 1.1764 to 1.1800 in European morning before retreating sharply to 1.1767. Price then found renewed buying there and rose to an intra-day high at 1.1817 in New York morning on usd's broad-based weakness.
Newa from Reuters, German business morale fell unexpectedly in July on continuing supply chain worries and amid rising coronavirus infections, a survey showed on Monday. The Ifo institute said its business climate index fell to 100.8 from a revised figure of 101.7 in June. A Reuters poll of analysts had pointed to a July reading of 102.1. Despite moving narrowly in Asia, the British pound caught a bid in Europe and rose from 1.3737 to 1.3800 as drop in UK's Covid cases triggered short covering, cable later hit session highs of 1.3833 in New York on usd's retreat together with cross-buying in sterling.
Data to be released on Tuesday:
Italy trade balance, U.S. durables goods, durables ex-transport, durables ex-defense, redbook, monthly home price, consumer confidence and Richmond Fed manufacturing.
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