2019.03.1816:39:00UTC+00Dollar Exhibits Weakness Again

The U.S. dollar exhibited weakness against most major currencies on Monday, extending losses from previous session, amid speculation the Federal Reserve will sound dovish this week after concluding its monetary policy meeting on Wednesday.

The dollar index dropped to a low of 96.38, and after recovering to 96.63, faltered again and was hovering around 96.50, near its previous close.

The Federal Reserve is widely expected to hold interest rates unchanged and the central bank's forecasts on future rates and economic growth are expected to provide directional clues for markets.

On the Brexit front, the Speaker of the House of Commons John Bercow today blocked the government's motion to have another vote of the lawmakers on the deal. The speaker said the government couldn't bring the same exact motion twice, crushing Primer Minister Theresa May's hope of bringing the same deal back for a vote.

Following the Speaker's decision, the British Pound Sterling tumbled against major currencies. The greenback strengthened to 1.3252, gaining 0.3%.

Higher trade surplus in the eurozone propped up the Euro against the U.S. dollar to 1.1344, yielding it a gain of nearly 0.15%.

The Japanese yen was up by 0.06% against the greenback, trading at 111.41 yen a dollar.

The dollar was down 0.14% against the Swiss franc with the USD/CHF trading at 1.0007, and was down 0.27% against the Aussie, while it gained marginally against the Canadian loonie.

In U.S. economic news today, a report released by the National Association of Home Builders said Homebuilder confidence in the U.S. has held steady in the month of March.

The report said the NAHB/Wells Fargo Housing Market Index came in at 62 in March, unchanged from February. Economists had expected the index to inch up to 63.

"Builders report the market is stabilizing following the slowdown at the end of 2018 and they anticipate a solid spring home buying season," said NAHB Chairman Greg Ugalde.

"In a healthy sign for the housing market, more builders are saying that lower price points are selling well, and this was reflected in the government's new home sales report released last week," said NAHB Chief Economist Robert Dietz.

He added, "Increased inventory of affordably priced homes - in markets where government policies support such construction - will enable more entry-level buyers to enter the market."