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The U.S. dollar was muted at the beginning of an eventful week, with market participants awaiting the midterm elections on Tuesday and the conclusion of a Federal Reserve policy meeting on Thursday.
On top of that, sanctions against Iran have taken effect Monday.
The buck, measured by the ICE U.S. Dollar Index
DXY, + 0.21%
was modestly stronger, up 0.1% at 96.601.
Democrats are expected to win back control of the House of Representatives in Tuesday's vote, while the Senate will likely keep control of the Senate. Goal overshadowing these predictions is the fact that many polls got 2016 presidential elections-calls all wrong. Results are due on Tuesday – Election night- though the wait for a concludes the results of the morning Wednesday morning or beyond.
Do not miss: Dollar traders fear midterm-election risk, but here's the reason
Read: Stock market bulls hope midterms revive upside momentum
"Said Konstantinos Anthis, head of research at ADSS," A divided Congress would make it more difficult for the US president to pass the legislation, "said Konstantinos Anthis, head of research at ADSS, in a note to clients. "Nevertheless, we should have a clear picture of what the outcome of the elections will be, the greenback should continue on the same positive tone."
Thursday's Fed statement will also be closely watched, though the central bank is expected to leave its policy unchanged.
Read: Economy sizzles on cusp of 2018 election, but not all lost ground reclaimed
Elsewhere, the British pound
GBPUSD, + 0.2314%
The Sunday Times that Prime Minister Theresa May has secured with the European Union. This deal would have to be avoided between Northern Ireland and the Republic of Ireland. May is also in the process of working out an agreement for a free-trade deal with the European Union, according to the report.
"Any shift in the participants' attitudes towards greater compromise would lead to a 'softer' Brexit would certainly be positive for the pound," said Marshall Gittler, chief strategist at ACLS Global.
Sterling jumped to a high of $ 1.3064 in early Monday trading, before retracing some of its gains when the October services. The index stood at 52.2 last month, versus 53.3 forecast. Indicates an expansion in activity.
The pound last bought $ 1.2989, up from $ 1.2966 late Friday in New York. Sterling also strengthened against the euro
EURGBP, -0.3189%
with the shared currency buying £ 0.8759, down 0.3%.
Against the dollar, the euro
EURUSD -0.1142%
traded at $ 1.1371, down from $ 1.1388 late Friday in New York.
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