The U.S. dollar was marginally changed on Monday, regardless of the absence of major data reports from the nation. The FOMC meeting also weighed on the greenback which the U.S. central bank is highly forecasted to incite an interest rate hike.
Judging by Federal Reserve’s futures prices, investors have priced in more than 96 percent chance that the central bank lifted rates overnight to between 1.00 and 1.25 percent on Wednesday.
The index which tracks the value of the greenback against its major opposing currencies, the U.S. dollar index, was steady at 97.248 on the day.
Tempus’ currency strategist Juan Perez says that ahead of Wednesday’s Federal Open Market Committee meeting, other things are going to be comparatively quiet. He added that the foreign exchange market is being spoken by Theresa May’s dynamics.
In other currencies, pound sterling was 0.55 percent lower at $1.2650.
Palladium was close to its 16-years highs on the back of strong demand on Monday. However, poor fundamentals are highly forecasted to take their toll on metal prices to manufacture auto-catalysts for cars that are fueled with gasoline.
Palladium added 0.1 percent to $891.50 per ounce after jumping over $910 last Friday, highest since 2001.
According to Societe Generale’s head of metals research Robin Bhar, speculators are pushing the prices higher as there was a shortage of metal for instant delivery. Bhar added that the shortage made a backwardation of $6 for June and $21 for July over the contract for August.
U.S. gold futures inched lower by 0.3 percent at $891.50 per ounce. Spot gold was also marginally down by 1 percent to trade at $1,266.76 per ounce, its biggest drop since May 18.