Dollar Trades Unchanged on Monday Amid Global Holiday

Updated:

Checkmark

Invest at least $250 in D2T to gain lifetime access to our VIP Signals

Checkmark

Get early access to Dash 2 Trade’s Presale. Buy the D2T token now

Checkmark

Existing community of 70,000+ traders

Checkmark

Unlocks access to the leading crypto trading analysis, signals and trading tools

Checkmark

As featured in CryptoNews.com, FXEmpire.com, FXStreet.com and more

Checkmark

World class development team backed by Quant developers and VC investors



On Monday, the dollar (USD) slightly increased, temporarily pulling away from recent six-month lows against a basket of key currencies. Recent market speculation is that the US Federal Reserve’s tightening cycle may be coming to an end, and the fragile state of sentiment has caused it to decline.

Additionally, the first trading day of the year was quiet since several nations, including important commercial hubs like Britain and Japan, were closed for a holiday.

The dollar index (DXY), which compares the value of the dollar to a basket of other major currencies, was trading slightly higher at 103.65, up about 0.16% from the recent lows of about 103.38, which were reached last week.

In other news, the euro (EUR) was trading at $1.0680, down almost a third of a percent but still close to its highest levels since June.

Dollar Weaker Against the Yen

The dollar was slightly weaker against the yen (JPY) at 130.94 after falling to its lowest levels since August last month.

Speaking on the dollar’s performance, Ulrich Leuchtmann, the head of forex research at Commerzbank, said: “There is an attempt by the dollar index to pull higher today, but we do see that it is losing a good part of the strength it gained last year.” He further noted:

“After the last Fed meeting, the market was not convinced that the Fed won’t cut rates later in 2023. It’s going to be an interesting year.”

US Fed Decision Critical in Near Term

The Fed has begun to slow the rate of increases after raising rates by a total of 425 basis points since March to rein in rising inflation. The Fed’s tightening supported the dollar index’s 8% increase last year, which was its largest annual increase since 2015.

Markets continue to pay close attention to information about central banks, inflation, and other indicators of how lengthy and severe a recession may be.

The managing director of the International Monetary Fund, Kristalina Georgieva, said on Sunday that 2023 will be a difficult year for the world economy.

 

You can purchase Lucky Block here. Buy LBLOCK

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.