By Anneken Tappe, MarketWatch

Currency traders focus on Brexit, global growth

The U.S. dollar underperformed many of its major rivals on Monday following a slump in home-builder sentiment.

Otherwise, major themes continued, with investors focusing on the global growth slowdown and European political developments

The National Association of Home Builders monthly confidence index dropped to 60 (http://www.marketwatch.com/story/home-builder-confidence-tumbles-the-most-since-2014-as-housing-headwinds-catch-up-2018-11-19) in November, compared with 68 in the previous month, leading the buck to extend its losses versus rivals. The greenback had already traded rather muted earlier in the day, adding on from Friday's weakness that came on the coattails of comments by Federal Reserve Vice Chairman Richard Clarida (http://www.marketwatch.com/story/british-pound-bounces-after-worst-day-in-more-than-2-years-2018-11-16). In an interview with CNBC (http://www.marketwatch.com/story/feds-no2-clairida-says-there-are-signs-global-growth-is-slowing-but-doesnt-think-rate-hikes-are-too-rapid-2018-11-16), Clarida Friday offered a more dovish view on the Fed's monetary policy normalization path, and warned of a slowing global economy. Dallas Fed President Robert Kaplan also acknowledged global slowing. Fed Chairman Jerome Powell also noted the headwinds abroad during a speech last week.

Read:Markets think Powell 'blinked' in Dallas (http://www.marketwatch.com/story/markets-think-powell-blinked-in-dallas-2018-11-19)

The buck continued its modest slide on Monday, with the ICE U.S. Dollar Index down 0.3% at 96.192.

The New Zealand dollar was the worst performer among developed market currencies, dropping to $0.6837 from 0.6877 late Friday in New York, as the currency retraced its rally from late last week that was helped by weakness in its U.S. rival.

In Europe, lingering political tensions remained a factor, with traders focusing on developments surrounding Italy and British pound traders watching for Brexit news.

One euro last bought $1.1451, little changed from $1.1418 late Friday in New York.

Investors continue to focus on a possible party leadership challenge to Prime Minister Theresa May. Around 20 letters from Conservative members of parliament calling for a no-confidence vote have been made public, with more expected to exist in private, meaning that May is still not out of the woods yet. It would take 48 letters to trigger a vote. That said, no more cabinet resignations have followed last week's flurry (http://www.marketwatch.com/story/these-are-the-latest-resignations-from-the-uk-government-that-rattled-investors-2018-11-15).

Don't miss:Brexit turmoil: Here's what's at stake if U.K.'s May faces a leadership challenge (http://www.marketwatch.com/story/brexit-turmoil-heres-whats-at-stake-if-uks-may-faces-a-leadership-challenge-2018-11-16)

Sterling last fetched $1.2855, down slightly from $1.2833 late Friday. The euro-sterling pair was up 0.1% at GBP0.8906.

Read:Here's how much Brexit turmoil might whack the British pound, analysts predict (http://www.marketwatch.com/story/heres-how-much-brexit-turmoil-might-whack-the-british-pound-analysts-predict-2018-11-15)

(END) Dow Jones Newswires

November 19, 2018 12:05 ET (17:05 GMT)

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