US Dollar
The U.S. dollar traded mixed against its major peers, adding gains against the Japanese yen and the Australian dollar. After, FED Chair Janet Yellen’s testimony last week, it is unlikely that a rate hike will take place in June. Since, despite the improving labor market, inflation and wage growth are too low, according to Yellen.
The Fed's policy is in contrast to those of its counterparts in Europe, China and Japan as the latter boost their economies with loose monetary policies.
EURO
The EUR/USD continued to fall during Monday’s Asian session in a wave of losses for the third day, to hit its lowest level in five weeks. Investors will be awaiting several economic data releases throughout the day.
The British pound
The pound fell slightly, Monday morning, against the US dollar, ahead of the release of the Manufacturing Purchasing Managers Index, which is expected to come out at 53.5 in February, vs. 53.0 in January.
Japanese yen
The Japanese yen traded lower against the greenback on Monday. Data on the Japanese Manufacturing PMI for February came in better than expected at 51.6, vs. a previous reading of 51.1 points.
Australian dollar
The Australian dollar declined versus the greenback before the upcoming policy meeting on Tuesday. HIA New Home Sales rose by +1.8% in January after a decline of -1.9% in December. Company Operating Profits for the fourth quarter declined by -0.2%, below the estimated growth of +0.7%. Last quarter’s reading was revised down from +0.5% to +0.4%. Commodity prices declined year on year by -20.6% in February