Dollar Holds Steady against Euro as Market Awaits Fed’s Minutes Report

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Dollar Holds Steady against Euro as Market Awaits Fed’s Minutes ReportThe dollar held steady against the euro after rallying for three weeks as the market waits for the Federal Reserve to release this week the minutes of the Federal Open Market Committee meeting in March.

The dollar was trading at $1.3708 a euro as of 7 a.m. trade in London after inching 0.3 percent higher the past week to $1.3705. The yen rose 0.2 percent to 103.08 per dollar, continuing with its 0.6 percent gain last Friday. It advanced 0.2 percent to 141.30 per euro, after jumping 0.7 percent last week to 141.54.

“The minutes may add more color around why they shifted the guidance for the eventual tightening in a more hawkish direction,” Imre Speizer, an Auckland-based market strategist at Westpac Banking Corp told Bloomberg. “When positioning is extremely short, to me that’s a signal that there’s more risk that they buy back those shorts,” he commented, pointing to bets of a plunge in the dollar.

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Leveraged funds had 34,199 more contracts wagering on a fall than a gain on the Intercontinental Exchange Group Inc.’s Dollar Index by April 1, according to figures from the Washington-based Commodity Futures Trading Commission. This is the highest since the data began to be published in July 2010.

The Federal Reserve is expected to announce on April 9 the minutes of its meeting held in March 18-19 which it slashed the monthly bond-purchasing program by $10 billion to $55 billion.

The yen advanced against the dollar, while the treasuries rose last Friday after U.S. Labor Department report showed jobs grew less than expected. 192,000 jobs were created, as opposed to an estimate of 200,000 new jobs, according to a Bloomberg poll of economists.

To contact the reporter of this story; Yashu Gola at Yashu@forexminute.com