Dollar Trades Mixed Versus Peers Amid Low Volumes
The greenback traded mixed versus its Group-of-10 peers and in tight ranges on aggregate as volumes stayed low as a holiday-shortened week kicked off.
The Bloomberg Dollar Spot Index rises as much as 0.2%, mainly boosted by yen spot weakness; the gauge fell 0.5% on Friday, triggered by lower-than-expected key inflation data.
USD/JPY rises 0.3% to 156.81 after declining 0.7% on Friday.
The yen’s volatility skew suggests traders become wary of intervention risk as spot weakness remains a theme for the leveraged community.
One-week risk reversals traded earlier at 122 basis points, puts over calls, compares with reading of 67 basis points on Friday.
EUR/USD reverses modest gains to trade 0.2% lower at 1.0407; President Christine Lagarde said that the ECB is nearing its inflation target but must remain alert to lingering dangers in some sectors.
GBP/USD little changed at 1.2571; the UK economy failed to grow in the third quarter, according to revised estimates that suggest the slowdown has been sharper than expected since Labour took office.
Source : Bloomberg
