The dollar fell,investPeople wait and watch Federal Reserve (Fed), United KingdomCentral bank,JapanThe Central Bank and many other central banks are taking decisions this week. The euro gained on reports that the European Central Bank will focus its attention on additional liquidity in the banking system.
The US dollar index (DXY), which tracks the dollar’s performance against six major currencies, fell 0.1% to 105.202, not far from a six-month high of 105.43 hit on Thursday. The US dollar index rose for nine consecutive weeks last week, recording its longest winning streak in nearly 10 years.
The euro is trading 0.2% higher at $1.0683 against the dollar. Reuters reported that European Central Bank policymakers are considering raising the reserve requirement ratio to deal with excess liquidity.
Michael Brown, Trader’s Market Analyst declines or incurs significant risk.”
Treasury Secretary Yellen said on Monday that she sees no signs that the US economy is entering a recession. Resilient US economic growth has helped the dollar rebound in recent weeks, but the rally is likely to be tested by a number of data and Wednesday’s Fed decision.
Federal funds rate futures show that investors expect the Fed to maintain its interest rate target range at 5.25%-5.5% on Wednesday.
After the Fed meeting on Wednesday, the central banks of the United Kingdom, Switzerland, Norway and Sweden meet on Thursday, and the Bank of Japan meets on Friday.
The yen rose about 0.2% to 147.62 yen against the US dollar as Japan celebrated the Respect for the Elderly Day holiday yesterday.
Investors widely expect the Bank of Japan to keep interest rates unchanged at minus 0.1% on Friday, but will be paying close attention to signals from Bank of Japan Governor Kazuo Ueda on its policy outlook as his comments sent markets reeling. This has fueled speculation that the Bank of Japan is going to do so. Avoid overly-loose housing. Policy speculation.
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