Following a weak of depreciation the U.S. dollar finally saw some gains, and edged up against its competitors, adding close to one percent against the basket on six major currencies on Monday.
The Federal Reserve’s upcoming policy meeting has returned investors sights on the dollar, but the currency was mainly supported by the rise in U.S. debt yields. The 10-year U.S. Treasuries yield was up to 2.234 percent, helping the U.S. dollar recover from its steep declining following last week’s streak of disappointing data.
With the upcoming Fed meeting and Friday’s data release the U.S. dollar is expected to continue its rise.
The Euro which was been beating the U.S. dollar suffered losses on Monday, giving into the negative effect of Greece’s ongoing negotiations, and Greek bonds steeply falling as concerns now rise about the country’s possible departure from the European Union.
Last week the Euro reached its three months high against the dollar, which was dampened by disappointing U.S. data on retail sales and producer inflation, and U.S. industrial production falling for the fifth month in a row.
After days of rising the EUR/USD pair lost 0.58 percent abandoning its Friday’s high of 1.1466. The GBP/USD pair lost 0.44 percent and was at 1.5658, the USD/JPY added 0.45 percent to 119.7 and the AUD/USD lost 0.52 percent to 0.7996, all of which are gains for the U.S. dollar.
Elsewhere the Federal Reserve Bank of Chicago president Charles Evans hinted that there is a chance for the Fed to consider an interest rate raise as soon as June unlike initial expectations which had it happening no earlier than December, but Evans added that he sees it more fit for the raise to be pushed as far as the beginning of 2016.