Early trade in New York: Dollar rises against majors

01 Dec, 2015

The dollar gained marginally against major currencies on Monday as expectations for further stimulus this week from the European Central Bank drove the euro to its lowest since April. Trading was subdued, with the dollar moving in tight ranges against most rivals early in the North American trading session. The dollar index, which measures the greenback against six major world currencies, rose 0.1 percent to 100.150 after touching a new 8-1/2-month high of 100.310 overnight.
The release of disappointing data on US business sentiment and pending home sales failed to change the market's bullish dollar sentiment. The main focus for markets this week will be a series of central bank meetings, chiefly the ECB on Thursday, when it is widely expected to cut interest rates on euro deposits and extend its quantitative easing program.
By contrast, the US Federal Reserve is expected to raise US rates for the first time in almost a decade later in December. "The market's really kind of looking through the numbers that are coming out right now and more looking towards the end of the week and central bank discussions," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York. The euro was down 0.15 percent at $1.0572 but off its session low of $1.0564.

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