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The dollar, calmly, retains its advantage over its main rivals

The dollar, calmly, retains its advantage over its main rivals


The dollar is generally stable on Monday, as US markets remain closed on the occasion of a national holiday, which provides little incentive for traders to take risks. That said, the greenback still seems strengthened against its main competitors.

The dollar index futures , which follows the evolution of this currency with respect to a basket of six other major currencies, remains basically unchanged at 97.40. The USD / JPY remains stable at 110.15, the EUR / USD at 1.1095, up 0.1%, and the GBP / USD at 1.2979, leaving 0.2%.

The figures published by the Commerce Department on Friday indicated that the housing developments of the United States in December far exceeded the estimates of economists by 1.38 million, and experienced their highest rise in the last 13 years.

Retail sales have also been increasing and are an indication that manufacturing activity has rebounded to a maximum of eight months.

These positive data reduced the chances of the Federal Reserve cutting rates when it meets later this month.

Nor is the European Central Bank and the Bank of Japan expected to make any changes to their first monetary policy meetings of the year that are held this week, but the Bank of England is expected to cut interest rates in the near future.

The history of the dollar remains firm in the G3 space, according to analysts Chris Turner, Petr Krpata and Francesco Pesole of ING (AS: INGA ), in a research note. “Talking about a 2.0 Republican tax cut could consolidate that trend, at least in the G3 space. The macroeconomic weakening of the United States seems less worrisome now, but the market will soon consider the electoral risks of the United States again — especially if ( Elizabeth) Warren or (Bernie) Sanders will win the Democratic nomination.”

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