Dollar was unchanged near peaks in holiday thin trading
Many European markets were closed for holiday on Monday. The Dollar traded tightly near a six-week peak against the Euro and a three-month high versus the Yen on Monday as markets concluded that last Friday’s weak US housing data did little to help expectations of a Federal Reserve interest rate cut. On Monday, European market activity has been thin due to public holiday in Germany, Switzerland and Britain, while US markets were also quiet, as expected, due to the Memorial Day holiday. The US Treasury is expected to release this week its twice-annual report on currencies, which investors will crutinize to see if it calls on China to allow the Yuan to appreciate further after Beijing widened the currency’s trading band earlier in the month.