The euro was down on Monday as investors bought the dollar and prepared for volatile markets ahead of U.S.-China trade talks and a Federal Reserve policy decision.
Dollar is higher as investors brace for volatile markets
The dollar index, a gauge of its value versus six major peers was marginally higher at 95.896, after being down 0.8 percent on Friday.
The dollar fell 0.1 percent versus the offshore yuan to 6.7406. The rally in the yuan also fueled a bounce in the Australian dollar, which gained 0.18 percent versus the dollar to $0.7195.
Traders are bearish on the dollar for 2019. The euro was marginally weaker on Monday at $1.14.
The single currency managed to cling on to a 0.4 percent gain made last week despite the European Central Bank downgrading its growth forecasts for the near term.
Traders believe Europe’s slowdown and a dovish ECB are priced into the euro, which has traded in a $1.12-$1.16 range over the last three months.
Sterling was lower on Monday after posting its biggest weekly rise in more than 15 months last week as investors consolidated positions before a series of votes in the British parliament on Tuesday that will aim to break a Brexit deadlock.
Analysts expect sterling to remain volatile. Britain is set to leave the European Union on March 29, but the country’s members of parliament remain far from agreeing a divorce deal.
