The U.S. dollar drifted higher against its major counterparts in the European session on Monday, as investors await key risk events due this week, including U.S. mid-term elections and the Fed meeting for directional cues.
The Federal Reserve kicks off its two-day meeting on Wednesday, with economists anticipating interest rates to remain unchanged.
Investors focus on the accompanying statement for clues about the anticipated rate hike next month.
U.S. mid-term elections due on Tuesday would help decide whether Democrats take control of the House of Representatives. Republicans are likely to retain control of the Senate.
Investors doubt that a hung Congress could deter Trump's ability for smooth passage of legislation.
The ISM non-manufacturing composite index for October is due at 10:00 am ET. The consensus is for 59.4, down from 61.6 in the prior month.
The currency traded mixed against its major counterparts in the Asian session. While it rose against the franc and the yen, it held steady against the euro. Against the pound, it weakened.
The greenback climbed to a 4-day high of 1.0069 against the franc, from a low of 1.0024 hit at 6:45 pm ET. The greenback is seen finding resistance around the 1.02 region.
Having dropped to 1.1400 against the euro at 6:45 pm ET, the greenback reversed direction and advanced to 1.1355. If the greenback rises further, 1.12 is possibly seen as its next resistance level.
Survey data from Sentix showed that Eurozone's investor sentiment eroded for a third consecutive month in November to its lowest level in two years.
The Sentix investor confidence indicator dropped to 8.8 from 11.4 in October. The latest reading, which matched economists' expectations, was the lowest since October 2016.
The greenback hovered at a 5-day high of 113.34 against the yen, reversing from a low of 113.11 touched at 7:00 pm ET. The greenback is poised to challenge resistance around the 115.00 region.
The latest survey from Nikkei showed that Japan services sector activity continued to expand in October, and at a faster rate, with a PMI score of 52.4.
That's up from 50.2 in September, and it moves back above the boom-or-bust line of 50 that separates expansion from contraction.
The greenback reversed from an early low of 1.3027 against the pound, rising to 1.2964. The greenback is likely to find resistance around the 1.28 level.
Survey results from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK service sector registered the slowest rate of expansion since March.
The Purchasing Managers' Index dropped more-than-expected to 52.2 in October from 53.9 in September. The expected level was 53.4.
The greenback rose back to 0.7186 against the aussie, just few pips short of a 4-day high of 0.7183 seen at 8:45 pm ET. Next key resistance for the greenback is seen around the 0.70 level.
The U.S. ISM non-manufacturing composite index for October is due in the New York session.
The material has been provided by InstaForex Company -
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