Investing.com - The dollar edged lower against the other major currencies on Monday, as investors continued to lock in profits from the greenback’s recent rally and as trading volumes remained thin ahead of the New Year holiday.
Global financial markets closed early on Thursday, Christmas Eve, and remained shut for Christmas Day on Friday.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books due to the holiday period, reducing liquidity in the market and increasing volatility.
EUR/USD edged up 0.22% to 1.0987.
With the first U.S. rate hike since 2006 out of the way, investors were now focusing on the pace of future rate increases. The Federal Reserve, from its forecasts, is anticipating four rate hikes next year.
However, the Fed funds futures currently suggests there will be just two rate increases, one in June and one in December.
Mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
USD/JPY rose 0.22% to 120.55.
Data earlier showed that Japan’s industrial production declined 1.0% in November, compared to expectations for a 0.6% fall and after an increase of 1.4%.
A separate report showed that Japan’s retail sales declined by an annual rate of 1.0% last month, confounding expectations for a 0.6% slip and after a 1.8% rise.
Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.4917 and with USD/CHF at 0.9870.
The Australian was weaker, with AUD/USD down 0.10% at 0.7261, while NZD/USD added 0.12% to 0.6836.
Meanwhile, USD/CAD rose 0.23% to trade at 1.3884.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.12% at 97.89.