The dollar is down slightly against both the Euro and pound sterling at the start of the new trading week, but is basically unchanged against the Japanese Yen. The lack of U.S. economic data is keeping many investors on the sidelines. Investors are also reluctant to take positions ahead of the Federal Reserve policy meeting this week.
The Fed will conclude its 2-day policy meeting on Wednesday. The central bank is not expected to announce an increase in interest rates, but traders will be paying close attention for any hints at a rate hike at the June meeting. A recent batch of disappointing economic data has led many analysts to predict that the Fed will delay its first rate hike until later in the year.
After last week’s meeting in Latvia failed to yield an agreement, the Greek government has reportedly made adjustments to its team that is negotiating with international creditors. The country’s alternate foreign minister, Euclid Tsakalotos, will now be leading the negotiating team. The move would reduce the influence of Greek finance minister Yanis Varoufakis on the negotiations.
Italy’s Economy Minister Pier Carlo Padoan said on Monday that there were no discussions taking place among European policymakers regarding an alternative plan for Greece, if talks with donors failed, and urged Greek authorities to hasten with reform proposals to reach a deal with creditors to access much needed funding.
The dollar slipped to nearly a 3-week low of $1.0926 against the Euro Monday morning, but has climbed back to around $1.0880 this afternoon.
Germany’s import prices continued to decline in March but the pace of decrease slowed for the second month, data from Destatis showed Monday.
Import prices fell by less-than-expected 1.4 percent in March from last year, following a 3 percent drop in February. Prices were expected to fall 2 percent. Nonetheless, the import price index has been falling since January 2013.
The German economy is set to grow around 2.25 percent this year but the consumption-driven growth is likely to be short-lived, the IW Cologne economic institute said in a report on Monday.
The growth rate projected by the institute is bigger than the 1.8 percent estimated by the government. The institute expects growth to ease to around 1.5 percent next year.
The buck dropped to a month and a half low of $1.5260 against the pound sterling Monday, from around $1.51 this morning.
British manufacturers expect output and new orders growth to firm up and exports are forecast to grow at the strongest pace since July 2014, the quarterly Industrial Trends Survey from the Confederation of British Industry showed Monday.
However, the number of firms highlighting orders or sales as a possible constraint to activity rose to its highest level since October 2013.
The greenback climbed to a high of Y119.431 against the Japanese Yen Monday, but has pulled back to around Y119.000 this afternoon, nearly unchanged for the session.
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