GU: Dollar, gold rise on Fed policy, economic uncertainty
Unlike the buoyant equity markets, foreign exchange traders aren't that convinced that the Federal Reserve will ease monetary policy tomorrow to spur economic growth.
The US currency rose 0.1% against the euro, trading at $1.3254.
"Having flirted on Friday with the risk that the Fed could be on the cusp of easing again, the USD is a touch stronger this morning as the market recognises that the Fed may not at this point expand its balance sheet any further," said Jane Foley, research director at Forex.com.
The US economy is still expanding, despite the disappointing news on Friday, when the Labour Department said the country lost 131,000 jobs in July, more than the 65,000 expected.
Gold prices continued their rally today, after rising 0.9% on Friday, following the gloomy US economic news. Investors tend to snap traditionally "safe heaven" assets in times of uncertainty, or when in doubts over future economic growth. Spot gold rose to $1,206.95 an ounce, up from $1,203.30 in New York on Friday.
