Dollar holds just below 150 yen ahead of busy central bank, data-packed week
2 min read
The U.S. dollar eased a touch on Monday, and the yen managed to stay on the stronger side of 150 per dollar, as traders looked ahead to several major central bank meetings and a slew of economic data releases this week.
The Bank of Japan (BOJ) kicked off its two-day monetary policy meeting on Monday, leading a week that will also see interest rate decisions from the U.S. Federal Reserve and the Bank of England (BoE).
A deluge of purchasing managers’ surveys, euro zone inflation and GDP data, and U.S. nonfarm payrolls at the end of the week will also be competing for the top of traders’ minds.
“It is another busy week for FX markets, with important central bank meetings taking place around the world and some top-tier macro data too, said Chris Turner global head of markets at ING in a morning note.
“On paper, there should not be enough out there to knock the dollar’s dominance this week, but focus on the U.S. quarterly refunding could throw some curveballs.”
That funding announcement comes as mounting deficits and a heavier interest rate burden have substantially increased the U.S. Treasury’s funding needs. Since the last refunding announcement in August, borrowing rates have spiralled to their highest since 2006-07.
The dollar index was last down 0.14% at 106.45, hurt by a small pick up in the euro , which gained 0.17% to $1.05835.
The common currency has had a quiet October, and still is not far off a 10-month low of $1.0448 hit at the start of the month.
This report’s information was first seen on REUTERS; to read more, click this link.
