Dollar firmer as Venezuela raid hangs over sentiment

The dollar started ‍the first full trading week of the new year on ⁠the front foot, rising to a 3-1/2-week high versus the euro and gaining against sterling.

Currency moves have so ‌far been ‌modest on Monday, although the United States' audacious raid in ‌Venezuela and capture of President Nicolas Maduro to face drug-trafficking charges in New York loom as a risk for sentiment.

U.S. macroeconomic indicators this week could be crucial in steering Federal Reserve policy, beginning with ISM on Monday and ‌culminating with ‍monthly non-farm payrolls figures on Friday.


The ‍dollar added 0.1% to $1.1705 per euro, and ‌earlier strengthened as far as $1.170025 for the first time since December 11.

The U.S. currency advanced 0.1% to $1.34495 per British pound, and gained 0.1% to 156.90 yen.

Traders are pricing in two U.S. rate cuts this year, compared ‍with one projected by a currently divided Fed board.

Investors are also watching for ‍whom U.S. ⁠President Donald ⁠Trump chooses to be the next Fed chair, as the term of current head Jerome Powell ends in May.

Trump said that he would make his Fed chair pick this month, and has said Powell's successor will be "someone who believes in lower interest rates, by a lot."