The dollar slowly
ceded ground in Asia on Monday with greenback bulls still nursing
grudges after the Federal Reserve's rate guidance last week proved to be
less "hawkish" than many had wagered on.
There
was limited initial reaction to the Group of 20 meeting over the
weekend, which retained the familiar form of words on currency
intervention but dropped a pledge to avoid trade protectionism.
"The G20 Meeting in Baden-Baden was notable for the impasse over free trade between most countries, which want to expand it, and the U.S. which wants to weaken it," wrote analysts at CBA in a note.
A holiday in Japan made for thin trading, leaving the dollar a fraction softer near two-week lows at 112.54 yen JPY=. That was a long way from the March top of 115.51 and biased risks to a re-test of the February lows around 111.59/69.
Against a basket of currencies, the dollar was 0.16 percent softer at 100.140 .DXY, having matched a five-week trough set last week in the wake of the Fed's rate hike.
The retreat left a double top on the charts at 102.25/26 that looks bearish for the near-term.
The situation was much the same against the euro, which was holding firm at $1.0764 EUR=, having reached a six-week peak of $1.0782 on Friday. It now faces stiff chart resistance at the January top of $1.0828.
Politics loomed large again with the first televised French presidential debate due later on Monday.
Opinion polls out over the weekend showed centrist Emmanuel Macron and far-right leader Marine Le Pen running neck and neck for the first round of voting in France's presidential election, due April 23. Yet they also showed Macron beating her comfortably in the second-round run-off on May 7.
Dealers were also braced for a packed week of Fed messaging with no less than nine different policymakers set to speak, including Chair Janet Yellen on Thursday.
"The G20 Meeting in Baden-Baden was notable for the impasse over free trade between most countries, which want to expand it, and the U.S. which wants to weaken it," wrote analysts at CBA in a note.
A holiday in Japan made for thin trading, leaving the dollar a fraction softer near two-week lows at 112.54 yen JPY=. That was a long way from the March top of 115.51 and biased risks to a re-test of the February lows around 111.59/69.
Against a basket of currencies, the dollar was 0.16 percent softer at 100.140 .DXY, having matched a five-week trough set last week in the wake of the Fed's rate hike.
The retreat left a double top on the charts at 102.25/26 that looks bearish for the near-term.
The situation was much the same against the euro, which was holding firm at $1.0764 EUR=, having reached a six-week peak of $1.0782 on Friday. It now faces stiff chart resistance at the January top of $1.0828.
Politics loomed large again with the first televised French presidential debate due later on Monday.
Opinion polls out over the weekend showed centrist Emmanuel Macron and far-right leader Marine Le Pen running neck and neck for the first round of voting in France's presidential election, due April 23. Yet they also showed Macron beating her comfortably in the second-round run-off on May 7.
Dealers were also braced for a packed week of Fed messaging with no less than nine different policymakers set to speak, including Chair Janet Yellen on Thursday.
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