Forex - Dollar gained despite firmer US crude futures and weaker Gold
The Dollar rose on Monday, as weak euro zone data took the steam out of last week’s Euro rally and investors braced for a Federal Reserve statement this week that will likely focus on rising US inflation pressures.
The Fed’s inflation mindset when it announces its monetary policy decision on Wednesday should ensure that US interest rates will remain unchanged after a string of cuts since mid-September, analysts said.
The Fed is expected to hold rates at 2% on Wednesday but the futures markets have priced in a pair of rate hikes by year end due to surging energy and food price inflation. Unlik the Fed, the European Central Bank has signaled a rate hike in July, though officials have been at pains to make clear that this would not necessarily lead to a series of hikes.
US crude futures were up more 1% at $137.36 on Nigerian supply disruptions and escalating tensions between Israel and Iran. Gold fell 1.94% at 883.35 extending last week sell-off as investors took more profits on the ba