The US dollar rebounded across the board on Monday, as a dearth of economic data prompted a broad reversal among major dollar pairs, while commodities stagnated.
The dollar index, a trade-weighted average of the US dollar against six competitor currencies, emerged from four-month lows, climbing 1.1 percent to 94.16. The dollar index closed at 93.14 on Friday after posting its fifth consecutive weekly decline.
The dollar was higher across the board on Monday, posting sharp gains against the euro, Canadian dollar and Swiss franc.
The EURUSD fell more than 130 pips in the New York session, plunging to the low-1.13s. The pair consolidated at 1.1310 in the afternoon session.
The USDCAD climbed 150 pips to 1.2165.
The USDCHF advanced 100 pips to 0.9255.
The markets are awaiting the bulk of this week’s housing data and will keep a close eye on Friday’s Federal Open Market Committee meeting minutes. In the meantime, the outlook on the dollar remains largely negative, as downbeat data are delaying expectations for a rate hike until well after the summer.
On Monday the National Association of Home Builders said builder confidence edged lower in May, but that a rebound was expected in the second quarter.
Oil prices were little changed at the start of the week. US crude held steady at $59.72 a barrel at 15:21 ET, while Brent declined 0.7 percent to $66.35 a barrel.
Gold futures were little changed at $1,224.70 an ounce.