The U.S. dollar remained steady on Monday morning in London, supported by Friday’s reports that U.S. homebuilding surpassed a one-year high in January and that building permits hit levels not seen since 2007. The stronger-than-expected housing data counterbalanced new worries about the U.S. deficit which analysts predict will hit near $1 trillion in 2019 as a result of the government’s new tax bill and infrastructure spending plans.
The dollar index was at 89.08 .DXY, a modest 0.03 percent gain in the session, with the dollar trading mixed against its primary trading partners in a trading day with expected low volatility. The dollar was trading at 106.51 yen as of 11:11 a.m. GMT, but it remained lower against the euro and the British pound. Despite its steady trading to start the week, the dollar’s relative weakness has sent commodity prices higher with oil being the primary beneficiary of the weak greenback. Oil prices were steady on Monday morning in London. Brent crude futures were trading at $65.21 per barrel, 14 cents down from its price during the Asian session, but still holding on above the $65 mark. U.S. WTI futures were at $62.26 per barrel.
The dollar’s outlook remains uncertain for the long term as traders wait to see how inflation fears in the United States will play out against monetary policy tightening in other parts of the world.