US Dollar Starts The Week Lower
The US dollar drops again versus major currencies, after a recent slight fall against the backdrop of a decline in the yield of US Treasury bonds. The dollar index last stood at 92.28, down 0.17%. The greenback reached this year’s new high last Wednesday at 93.22, then lost its rally. The euro recovered slightly after falling last week to its lowest level since December 22. Nevertheless, the single currency is expected to face risks associated with some political instability in Europe, which limits the rebound against the US currency.
Gold prices were little changed, as the dollar opened the week slipping against the other major currencies amid sagging US 10-year Treasury yields. Gold prices were down 0.02%, to $1,320.2. Oil prices fell from last week’s multi-year highs. WTI crude oil was trading at $70.47 a barrel, down 0.33%. Brent was down 0.45% at $76.77 per barrel.
It is expected that trade negotiations between the United States and China will resume this week, with the potential visit of Chinese Vice-Premier Liu He. Markets also set eyes on the US retail sales data on Tuesday and Japan’s GDP on Wednesday to look for more directional drivers.