Dollar Remains Subdued During Quiet Trading

The US dollar remained vulnerable during thin Monday’s trading, subdued by the outlook for a delayed interest rate hike from the Federal Reserve. The greenback managed to pare its losses versus the euro but maintained decline against other majors, including the Great Britain pound and the Japanese yen.
US policy makers were sending mixed signals lately. Some say that the rate lift-off is still possible this year while other argue in favor of a delay till 2016. Not many investors bet on a hike in 2015 as shown by the CME FedWatch that demonstrates just a 37 percent probability for the start of monetary tightening in December (and meager 8 percent in October).
Such view pushed the US currency down. This helped commodities (including gold) and, as a result, commodity-related currencies (including the Australian dollar).
Monday’s trading was quiet and without any important macroeconomic news as US markets were closed due the Columbus day. Markets in Canada and Japan were also not working.
EUR/USD was near its opening level of 1.1360 as of 18:31 GMT today after rising to the session high of 1.1396 earlier. At the same time, GBP/USD gained from 1.5311 to 1.5349 and USD/JPY dropped from 120.17 to 119.98.

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