Forex – Dollar uphill but weigh data on US compensation

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The dollar rises against the basket of other major currencies on Monday but the gains will remain limited after data revealed a slowdown in the US compensation in January, data that have reduced expectations of a rapid increase in interest rates for this ‘year.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, salt 0.26% to 99.95.
Although the employment report on Friday has revealed that the growth of jobs has exceeded expectations, the increase in fees has remained subdued, which could prompt the Federal Reserve to adopt a more cautious approach in intervening on rates interest.
According to the Control Tool rates the Fed Investing.com, less than 10% of traders expect an increase in interest rates at the March summit. The possibility of intervention in June amounted instead to just under 50%.
The Fed, which has raised interest rates in December, predicted three increases this year.
Last week the US central bank reiterated that the economy is improving, but did not give clear indications about the timing of the next increase in rates since that policymakers expect to assess the impact of the protectionist policies of the new government and the recent Trump comments on currencies.
Weigh on the greenback indeed fears that the choice of a weak dollar can play a key role in the plan “Before America” by Trump.
The dollar was almost unchanged against the yen, with USD / JPY at 112.62, not far from the minimum of last Thursday to 112.04, the lowest since Nov. 30.
The US currency up against the euro, with EUR / USD shedding 0.32% to 1.0747.
In the euro area, the data this morning showed an increased activity of German factories to the maximum of two and a half years in January, with orders to factories that are splattered by 5.2%, the highest since January 2014.
The dollar rises also against the pound, with GBP / USD down 0.25% to 1.2453.
The Australian dollar falls after disappointing data on retail sales, with AUD / USD shedding 0.25% to 0.7661.

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