Traders are bracing for a week packed with monetary policy news.
He global dollar gained 0.18% on Monday as traders prepare for a week packed with news, including monetary policy decisions to be made by the Federal Reservehe Bank of Japan and the Bank of Englandas well as what could be a crucial employment report in USA on Friday.
He dollar indexThe index, which compares the greenback to a basket of six major currencies, gained 0.18 percent to 104.56 units; the euro fell 0.33 percent to $1.0821.
The dollar/yen pair added 0.13% to 153.995, reversing an earlier decline of as much as 0.49% to 153.04. The yen was also little changed after its best weekly rally since late April, boosted by shifting interest rate expectations and a sell-off in the stock market.
Waiting for the central banks
It is widely expected that the US Federal Open Market Committee (FOMC) leave rates unchanged this week and cut them by a quarter point in September.
The Fed’s decision poses a risk to the dollar/yen pair, he said. Kristina Cliftonsenior economist and chief currency strategist at the Commonwealth Bank of Australia“Any hint of easing by the FOMC could send USD/JPY significantly lower, but a hawkish FOMC stance will likely have little impact,” he added.
The calendar for publishing corporate results in USA This week’s stock market is packed with heavyweights, including Amazon, Apple, Meta and Microsoft. Currency traders will also have to contend with not only the BoJ and the Fed on Wednesday, but also the Bank of England a day later.
Source: Ambito
