Dollar Remains Broadly Higher Vs. Other Majors
Investing.com - The dollar remained broadly higher against other major currencies on Monday, still supported by hopes for a rate hike and a tax overhaul in the U.S. before the end of the year, while political woes in Spain particularly dented demand for the euro.
The dollar remained supported after Federal Reserve Chair Janet Yellen indicated last week that the central bank was sticking to plans for a third rate hike this year.
The dollar received an additional boost from fresh hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last Wednesday.
EUR/USD dropped 0.62% to 1.1745 after Catalans voted for independence in a contested referendum on Sunday that ended in violence when police cracked down on polling booths, injuring hundreds of people.
Despite Spanish police measures to disrupt the referendum, which was declared unconstitutional by Madrid, the Catalan government said that 90% of the people votedin favour of breaking away, with a turnout of about 42%.
The Catalan government also blamed Madrid for the clashes on Sunday and called on the European Union to respond.
The pound was also lower, with GBP/USD down 0.62% at 1.3313, the lowest since September 14, after data showed that the UK manufacturing sector continued to expand in September, albeit at a slower pace.
Elsewhere, the yen and the Swiss franc were lower, with USD/JPY up 0.28% at 112.82 and with USD/CHF gaining 0.33% to trade at 0.9716.
Earlier Monday, data showed that confidence among Japan's manufacturers hit the highest level in ten years in September, helped by the weaker yen and strong global demand.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.32% at 0.7810 and with NZD/USD retreating 0.59% to 0.7186.
Meanwhile, USD/CAD rose 0.35% to trade at 1.2511, just off Friday'sfour-week high of 1.2530.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.52% at 93.38 by 05:20 a.m. ET (09:20 GMT), still close to Thursday's one-month peak of 93.50.
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Forex - Dollar Remains Broadly Higher Vs. Other Majors
