The dollar is holding onto slight gains against all of its major rivals Monday afternoon, but is little changed overall. The buck got off to a good start early Monday, but has pared its gains over the course of the session.
Many traders are reluctant to make any major moves ahead of Friday’s highly anticipated U.S. jobs report for August. After the hawkish comments coming out of Fed officials at the Jackson Hole summit at the end of the previous week, the jobs report could be the deciding factor on whether the Fed chooses to raise interest rates in September or holds off. The statements from Fed Chair Janet Yellen on Friday suggest that a rate hike is on the way in the coming months.
Global economic data has been on the light side at the start of the new trading week. On the U.S. economic front, personal income and spending data was as expected.
Personal income and spending in the U.S. rose in line with economist estimates in the month of July, according to a report released by the Commerce Department on Monday.
The Commerce Department said personal income climbed by 0.4 percent in July after rising by 0.3 percent in June. The increase in income matched economist estimates.
The report also said personal spending rose by 0.3 percent in July following a 0.5 percent increase in June. The spending growth also met expectations.
The dollar climbed to an early high of $1.1157 against the Euro Monday, but has since retreated to around $1.1190.
Italy’s consumer confidence fell to its lowest level in over a year and business sentiment reached an 18-month low in August, preliminary data from ISTAT showed Monday.
The consumer confidence index decreased to 109.2 from 111.2 in July, which was revised from 111.3. Economists had forecast a score of 110.3. The reading was the lowest since July last year, when it was 107. All sub-indexes declined and fears of unemployment rose.
The manufacturing sentiment index fell to 101.1 from 102.9 in July, revised from 103.1. Economists were looking for a score of 102.4.
Greece’s economy expanded in the second quarter at a slightly slower pace than estimated earlier, latest figures from the Hellenic Statistical Authority showed Monday. Gross domestic product grew a seasonally adjusted 0.2 percent sequentially, which was slightly slower than the 0.3 percent estimated earlier. In the first quarter, the economy contracted 0.2 percent.
The buck reached a high of $1.3058 against the pound sterling Monday morning, but has since eased back to around $1.3110.
Markets in the U.K. are closed today for a local bank holiday.
The greenback rose to an early high of Y102.390 against the Japanese Yen, but has since pulled back to around Y101.950.
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