US$ Largely Unchanged As Most Markets Remain Closed

The U.S. dollar opened today’s session largely unchanged from Friday as most of the world’s global markets remained closed in observance of Easter Monday.  Indeed, markets in Europe, England, Australia, New Zealand and Hong Kong will not reopen until Tuesday.  The greenback could see modest selling pressure throughout the day on risk assumption as U.S. equity futures are expected to open the week higher.  The dollar remains near the weakest levels in over 16-months against the Euro on speculation the European Central Bank will raise interest rates further, while the U.S. Fed maintains its easy monetary policy.  The ECB, which aims to keep inflation below 2%, this month raised interest rates by 25 basis points to 1.25%.  It left the door open for more rate increases as a sovereign debt crisis tempers growth in peripheral countries such as Greece, Portugal and Ireland.  Meanwhile, today’s economic docket is expected to show that new home sales in the month of March rebounded to 12.0% after falling 16.9% the month prior.  Tomorrow sees the release of the S&P Case Shiller Home price index and consumer confidence followed by durable goods orders and the Fed’s interest rate decision on Wednesday.  The Fed is widely expected to hold interest rates at a record low as inflation pressures remained muted in the world’s largest economy.  Gross Domestic Product, weekly jobless claims and pending home sales will be released on Thursday, and personal income, Chicago PMI and consumer sentiment will round out the week on Friday.