U.S Dollar Steady Monday in Quiet Start Ahead of FOMC Meeting
The U.S dollar was mixed versus its major trading partners early Monday, moving up against the euro and yen and down versus the pound and Canadian dollar from the Friday US close, but none of the moves was significant.
Compared to last week, however, the dollar was down against each of those four currencies heading into a busy week.
The US data schedule is light to start the week, with only the Chicago Fed National Index for September and the Dallas Fed’s manufacturing index for October released on Monday before a more packed schedule starts Tuesday.
The Federal Reserve’s quiet period ahead of the Nov. 1-2 Federal Open Market Committee meeting began Saturday.
A quick summary of foreign exchange action heading into Monday shows that GBP-USD moved up slightly to 1.3771 from 1.376 at Friday’s US close but was well below the 1.3832 peaks last week. No UK key data are due on Monday, so the focus is on the Bank of England’s path toward tightening and a heightening of Brexit tensions.
EUR-USD slipped modestly to 1.1623 from 1.1649 at Friday’s US close, though below the 1.1666 peaks last week. The German IFO survey declined more than expected due to a more pessimistic short-term outlook.
Other central banks such as the Bank of England and the Federal Reserve are well ahead of the European Central Bank in tightening monetary policy, which will keep downward pressure on the pair.
USD-CAD was down slightly from the Friday US close, falling to 1.2356 from 1.2373, now further below the 1.239 level a week ago.
While Canada wholesale sales will be released later in the morning, it is unlikely to impact the pair. Instead, the focus is on this week’s Bank of Canada meeting, where an asset price taper announcement is expected.
USD-JPY remained below the 114 level, rising modestly to 113.6947 from 113.4848 at the Friday US close. The pair hit a high of 114.585 last week.
The Bank of Japan will meet this week but is not expected to make any policy announcements as the Japanese economic recovery continues to lag other major economies. # U.S Dollar Steady Monday in Quiet Start Ahead of FOMC Meeting
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