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18 Jan - Fundamental
The dollar fell against the U.K. pound Monday but held steady against other currencies in a quiet trading session.
What prices are doing. The dollar was flat against the euro at $1.4389. It was also unchanged against the Japanese yen at ¥90.74.
But the dollar fell 0.5% versus the pound to $1.6345 after a report showed U.K. home prices rose in January.
The mixed action comes as most U.S. financial markets are closed for the Martin Luther King holiday. European markets rose in afternoon trading, while Asian shares ended mostly lower.
What's moving prices. Home prices in England and Wales rose 0.4% in January from the month before, according to a report from industry group Rightmove Plc.
The report helped support the U.K. pound, which is seen as a more risky asset and tends to benefit from upbeat economic news.
But the euro was held in check by concerns that Greece may default on its debt as the nation's fiscal problems continue to deepen.
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European Union finance ministers kicked off a two-day meeting Monday to discuss, among other things, a preliminary Greek budget plan.
What analysts are saying. «There have been no major developments over the weekend and focus this morning is on the E.U. finance minister's meeting,» Camilla Sutton, currency strategist at Scotia Capital in Toronto, wrote in a research report.
Traders are also digesting some stronger-than-expected corporate results released last week and expectations that policymakers around the world will keep economic stimulus measures in place. Those factors «should reward investors in risk seeking territory,» Sutton said.
Looking ahead, market participants will take in another slew of corporate financial results this week, as well as two key readings on the U.S. housing market and a report on inflation at the wholesale level.
«It is a light week in terms of U.S. data but with the Federal Reserve meeting next week, traders will be watching all incoming economic reports,» said Kathy Lein, director of currency trading at GFT in New York.
Investors have been debating the timing of a possible interest rate hike from the U.S. central bank as the economy continues to slowly recover. But with unemployment holding in the double digits, many economists say the Fed will keep rates low until the second half of the year.
