» Dollar mixed ahead of Bernanke speech and BoC rate Decision

The Dollar was mostly flat on Monday in a quiet session but expectations that the Federal Reserve will keep interest rates unchanged this year while other Central Banks tighten monetary policy kept sentiment negative. High oil prices and steady economic growth are expected to keep European Central Bank on a tightening path, although the Bank of Japan will likely lag all other Group of Seven central banks bar the Fed, even if it does hike rates from 0.5% some time this year. Analysts said “the Dollar remains biased to the downside as a result of the outlook that US interest rates will remain steady for the remainder of this year, which contrasts with rate hike expectations in Canada, the Euro-zone, UK and Japan”.

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