Forexpros – The dollar rose against most major global currencies on Monday, extending Friday’s gains after U.S. consumer sentiment figures beat expectations.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists’ forecasts for a 72.4 reading.
In Asian trading on Monday, EUR/USD was down 0.02% at 1.2330.
The consumer sentiment report primed sentiments that the U.S. economy will continue to grow and put less pressure on the Federal Reserve to stimulate the economy, which would otherwise weaken the dollar.
The data also prompted investors to make bullish calls for indicators due for release later in the week.
On Wednesday, existing home sales data will publish as will the minutes from the Federal Reserve’s latest monetary policy meeting.
Strong consumer sentiment figures coupled with healthy retails sales data and industrial production numbers fueled sentiments inbound indicators will surprise on the upside and lower the chance of Federal Reserve stimulus measures, which weaken the dollar.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.07% at 1.5686.
The dollar was up against the yen, with USD/JPY trading up 0.03% at 79.59, and up against the Swiss franc, with USD/CHF trading up 0.04% at 0.9743.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.04% at 0.9886, AUD/USD up 0.22% at 1.0440 and NZD/USD up 0.06% at 0.8079.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 82.64.
Investors will remain focused on Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting while the National Association of Realtors releases existing home sales.
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