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29/07/24
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USD Flat at Beginning of Busy Central Bank Meeting Week
On Monday, the US dollar inched up as traders prepared for a busy week of news that includes Wednesday’s policy decisions by the Bank of Japan and the Federal Reserve, followed by Friday’s US employment report for July.
The yen changed little after the currency’s strongest weekly rally since April due to a stock market selloff and moving interest rate expectations.
The U.S. dollar index, which measures its strength against 6 other major currencies, was 0.27% higher at 104.64. The euro dropped 0.41% to $1.08115, and the pound was 0.77% lower at $1.2841.
USD/JPY was 0.17% higher at 154.05, reversing an earlier drop of 0.49% to 153.04.
Markets have been monitoring the yen’s surge over the past week, with speculation rising of an interest rate hike by the BOJ this week helping to bolster the currency.
Win Thin, the Global Head of Market Strategy at Brown Brothers Harriman said in a client note the FOMC would likely keep rates steady on Wednesday but open the door for a cut in September. The jobs report for July would likely stay consistent with a labor market that is coming into better alignment whilst consumption is still supported.
It is generally expected the U.S. FOMC would not change rates this week.
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