CURRENCIES : Dollar Edges Higher As Fed-heavy Week Kicks Off
By Sara Sjolin, MarketWatch
Pound finds support after Conservative-DUP deal
The dollar inched higher in choppy Monday trade, rebounding from last week's losses, as traders geared up for a week full of Federal Reserve speakers.
The ICE Dollar Index was up 0.1% at 97.415, following three straight sessions of losses, according to FactSet data.
The euro fell to $1.1175 from $1.1193 late Friday in New York, failing to get a boost from German data that showed business sentiment hit a record in June. The Ifo business climate index rose to a higher-than-expected 115.1 points .
"While this morning's action in EUR/USD suggests that for now a lot of good news regarding the German economy may be in the price, there is still plenty of uncertainty over the outlook for Fed policy, which this week is likely to be impacted by data releases, U.S. politics and Fed speakers," said Jane Foley, senior FX strategist at Rabobank, in a note.
San Francisco Fed President John Williams said early Monday that gradual rate hikes are needed to avoid overheating the economy, while Fed Gov. Jerome Powell said he sees room to relax certain banking rules. On Tuesday, Fed Chairwoman Janet Yellen and Philadelphia Fed President Patrick Harker will speak in London, while Williams will give another speech in Australia.
In other currencies, the pound rose after U.K. Prime Minister Theresa May reached a deal with Northern Ireland's Democratic Unionist Party for its lawmakers to support the Conservative's minority government . Sterling bought $1.2732, up from $1.2718 late Friday in New York.
The yen dropped, with the dollar buying Yen111.66 compared with Yen111.29 on Friday.