The US Dollar Index took a breather from its recently struck 11-year peak in the wake of last Friday’s unexpectedly upbeat labor report from the US which raised investors’ expectations of an interest rate hike from the Federal Reserve. Market analysts warn FX players that though the greenback has appreciated strongly over a quick span, another strong catalyst would likely be needed to push the Dollar higher, so consolidation was a likely expectation in the short term.
As reported at 9:59 am (GMT) in London, the U.S. Dollar Index was trading at 97.425 .DXY, a loss of 0.2% after a rise to 97.8280 .DXY earlier in the session. The EUR/USD edged higher to $1.0885, a gain of 0.4% after dropping to $1.0822 earlier, moving away from Friday’s low of $1.0839. The USD/JPY was holding at 120.82 Yen, close to last week’s 3-month peak at 121.29 Yen.
Finance Ministers to Discuss Greece Situation
Markets will shift their attention to the Eurozone finance ministers meeting and discussions of Greece’s proposed reforms. It is incumbent upon the Greek government to ensure that reforms are successful else additional funding could be in question. Analysts expect the Euro to remain under heavy pressure given the uncertainty in Greece and the impending liquidity injection from the European Central Bank.