U.S. Dollar Under Downward Pressure to Start Week

The U.S. dollar was mixed on a quiet day on Monday, making gains solely against the underperforming Canadian dollar and British pound.

"The US$ is starting the week off on a weaker note, losing ground against almost all the majors," wrote BMO Capital Markets' Benjamin Reitzes earlier in the morning before the greenback made gains against the Canadian dollar. The U.S. dollar was up 0.0021 to 1.0218 against the Canadian dollar, rising 0.0026 at 8:00 a.m. EDT to a session high of 1.0230.

"One [other] exception is the pound, which is softer following a report from Hometrack that home prices fell sharply in July, and are down 4.4% y/y," he wrote further. "That's the biggest decline in the series' 7-year history."

Most recently, the pound sterling was down 0.0025 to 1.9892 and the euro was up 0.0047 to 1.5755, both against the U.S. dollar.

FX strategists from Citigroup anticipated long-term EUR/USD gains in a research note to clients.

"We continue to believe that the uptrend is still in place," they wrote of the currency cross. "The market is beginning to turn from good support which comes in around 1.56. Horizontal support is at 1.5611 and the channel base, which has been in place since the summer of '07, comes in at 1.5608. A rally back up to the highs and beyond is expected."

The U.S. dollar was down 0.22 to 107.63 against the yen while the Australian dollar was up 0.0013 to 0.9575 against the greenback.

USD/JPY down 0.22 to 107.63.

EUR/USD up 0.0047 to 1.5755.

GBP/USD down 0.0025 to 1.9892.

USD/CAD up 0.0021 to 1.0218.

AUD/USD up 0.0013 to 0.9575.

All data taken at 9:09 a.m. EDT.

By Ryan Szporer edited by Nancy Girgis