The dollar was steady on Monday with markets holiday in US and UK. Activity is expected to pick up as investors return from a long weekend, with market players looking to oil prices and stocks for clues on the Dollar's near-term direction. Also, investors are expecting economic data and speeches by Federal Reserve officials to provide a clearer picture of the deteriorating US economy.
Traders said further gains in Oil prices would likely hurt the Dollar. But with Oil prices vacillating near record highs, traders also saw the possibility that profit-taking could lead to a sharp fall in prices, which in turn could push the Dollar up. Crude oil rose about 20% percent in May to record levels $135.09 a barrel. This is putting doubt over the ability of US consumers and businesses to weather the credit- and housing market-led economic downturn and prevent the economy from sliding into full-blown recession.
EurUsd was unchanged at 1.5780. UsdJpy was up 0.21% at 103.40. UsdChf was 0.05% lower at 1.0238 while GbpUsd rose 0.03% at 1.9815.
Investors look to a raft of US data and speeches from top Fed officials, including Chairman Ben Bernanke on Thursday for more clues about the direction of interest rates. Among the main data points this week will be the flash estimate for May euro zone CPI on Friday. Data to watch today includes the Conference Board's May consumer confidence and US New Home Sales for April.