The dollar declined against a basket of major currencies ahead of a busy week including many important economic events with the FED, BOE and SNB declaring their interest rate decisions. The greenback fell 0.1 percent driven by the rally in the Canadian dollar which is considered the fourth largest component in the dollar index which also tracks the U.S currency against the euro, Japanese yen, British pound, Swedish crown and Swiss Franc. The rally in the loonie was due to the comments made by Carolyn Wilkins the senior deputy governor of bank of Canada who said that the bank is considering the possibility of reducing its monetary policy stimulus.
Markets are waiting the FOMC two days meetings to know what will be the tone of the FED regarding the rest of the year, however the markets are currently pricing 96 percent chance that the FED will hike the interest rates during this week’s meeting, but any hawkish tone from the FED will push the dollar up, while a dovish one will drive the greenback lower.
Furthermore, the British pound is still in the red zone pressured by the political issues after the surprising elections results last week, the GBP/USD pair fell 0.7 percent reaching 8 week lows to trade at $1.2650. The bank of England is expected to hold its interest rates in its meeting this Thursday.
Moreover, the Japanese yen gained 0.5 percent against the dollar, also the euro rose 0.1 percent against the dollar to trade at $1. 1205.
Additionally, the gold prices didn’t move too much during today’s trading session to close flat at $1,264.61 per ounce.
Finally, the decline in the technology sector due to the sell-off in Apple shares drove the U.S equities lower on Monday’s trading session. The Dow Jones Industrial Average fell 36.3 points, or 0.17 percent, to 21,235.67, the S&P 500 lost 2.38 points, or 0.10 percent, to 2,429.39 and the Nasdaq Composite dropped 32.45 points, or 0.52 percent, to 6,175.47.
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