The U.S. dollar demonstrated its strength on Monday as traders continued to hold on to dollars, nonetheless, took the view that the central bank tightening plans were largely priced in, while the euro eased from Friday’s two-month high.
The dollar index which tracks the U.S. currency against a basket of currencies gained 0.1% to 95.323 at 13:40 GMT. On Monday, the cash Treasury market did not operate as it was a public holiday.
The Federal Reserve’s meeting on January 25-26 is not expected to move rates yet.
The euro declined 0.2% against the U.S. dollar to $1.1396, after rising on Friday to a two-month high.
With no major economic data for the euro zone on the calendar this week, investors will focus on speeches from the ECB’s President Christine Lagarde, and other members of the central bank. They will focus on the minutes of the ECB’s December policy meeting as well.
Lagarde said the bank is ready to take any measures necessary to get inflation down to its 2% target. In the last month of 2021, inflation jumped to 5%, the highest on record for the 19-country currency bloc.
The central bank’s board member Isabel Schnabel said that rising interest rates in the euro zone would not push down soaring energy prices.
In other parts of the world, momentum for tightening is rising. For instance, even the Bank of Japan is debating how soon to begin telegraphing hike plans.
The outlier is the People’s Republic of China, where a number of economic data confirmed the impact of restrictions on consumer spending, prompting China to ease monetary policy.
The yuan last traded at 6.3490 per dollar.
The British pound dropped 0.2% against the dollar to $1.3651, after climbing last week to its highest since late October.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.