In Asian trading, the U.S. Dollar Index held close to a 6-month peak while the greenback managed to hold onto last week’s gains against the Euro. The Euro lost investors’ favor after the release on Friday of disappointing data from Germany which showed that business sentiment slumped; also weighing on the common currency is the growing possibility that the Eurozone economy could be caught in the fallout from the economic sanctions that are likely soon to be imposed by the E.U. government on Russia.
As reported at 11:36 a.m. (JST) in Tokyo, the U.S. Dollar Index steadied at 81.028 .DXY, edging off Friday’s high of 81.084 .DXY, a price last seen in February; this month, the Index has gained nearly 1.6% and is poised to close out the month with the best monthly gain in seven months. The EUR/USD was trading at $1.3421, close to an 8-month low and continuing last week’s 0.7% decline. The EUR/JPY also traded near a 6-month trough at 136.69 Yen.
U.S. Data Key to Fed Bias
Looking ahead to the week in the U.S., markets will be anxious to hear whether or not Janet Yellen, the head of the Federal Reserve, maintains a dovish bias. Most analysts anticipate that this week’s release of key data, specifically 2nd quarter GDP to be released on Wednesday and non-farms payrolls figures coming out on Friday, could influence the Fed’s outlook, which would provide some additional support to the U.S. Dollar.