Dollar stays firm as traders look to U.S. data for policy cues

 Dollar stays firm as traders look to U.S. data for policy cues

U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. REUTERS/Dado Ruvic/Illustration

The dollar clung to a recent bounce on Monday as investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, waiting for clues on the outlook for global inflation and for policymakers’ responses.

Trade was thinned by holidays in Japan and China, which kept a lid on volatility, leaving the greenback to trade where it settled after a Friday leap. It held at $1.2020 per euro and crept to a three-week high of 109.58 yen .

The dollar index , measured against six major currencies, held at 91.322.

The index dropped 2% through April as a positive view of global recovery prospects lifted trade-exposed currencies at the dollar’s expense, but bounced with upbeat U.S. consumption data on Friday.

“We expect the dollar to trend lower because of the…

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