The U.S. Dollar saw little movement in early trading today, having backed away from last week’s gains as a result of better than expected jobs data from the U.S. Meanwhile, traders eagerly await the outcome of this week’s meetings of the European Central Bank and the U.S. Federal Reserve Bank.
Analysts believe that the Euro and U.S. Dollar will continue to trade narrowly, at least until Thursday when the ECB returns a policy announcement, following Tuesday’s expected announcement by the Federal Reserve on interest rate direction. Economists are expecting both the ECB and the Federal Reserve to maintain their respective status quo, as regards interest rates.
Last Friday, the U.S. Dollar closed slightly lower after reaching a 5-week high against the Euro earlier that day, due in large part to an increase in the price of oil, which prompted some selling of the U.S. greenback. The U.S. Dollar also saw some boosts last week from non-farm payroll data which showed improvement in the jobs market, as not as many jobs were lost as had been originally anticipated.
At 07:51 GMT, the Euro gained slightly against the U.S. Dollar, up .1% to $1.5580 compared to $1.5511 on Friday.