Dollar Searches for Direction Before State of the Union

(MENAFN- Daily Forex) The dollar took a break from its downtrend on Monday morning, posting modest gains against its primary trading partners, and sending the dollar index slightly higher, to 89.18 .DXY, baby steps away from the three-year low of 88.429 .DXY hit last Thursday. The greenback was supported by U.S. GDP data released on Friday that showed an increase in domestic consumption and spending. Still, the U.S. dollar isn't expected to recover that quickly; U.S. equities are known to be among the most expensive in the world, and interest rates are set to rise in Europe as the European Central Bank curbs its easy monetary policy, making other currencies more attractive for investors. Likewise, analysts are expecting a policy change in Japan, making the yen a more interesting option for traders.

was trading at $1.2418 against the euro as of 3:03 p.m. HK/SIN, a 0.02 percent change. The greenback gained 0.08 percent against the yen, to trade at 108.79.

Stock Market Movements

Asian shares continued their uptrend for the most part on Monday, fueled by strong earnings reports and a positive outlook for global economic growth, even as the White House complained of unfair trade practices in the region. Japan's Nikkei 225 index gained 0.05 percent before retreating slightly, while Australia's ASX 200 rose 0.42 percent and South Korea's Kospi gained 0.91 percent. 36 percent of the S & P 500 is expected to release earnings reports this week, including the index's superstars such as Facebook, Microsoft and Amazon.

Traders are now looking towards President Trump's State of the Union address on Tuesday and the Federal Reserve meeting on Wednesday which will be the last for current Chair Janet Yellen.

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