© Reuters
Investing.com – It fell slightly after rising in early European trading on Monday, holding on to last week’s strength at the start of a week that includes several central bank meetings, the most important of which is the Federal Reserve meeting, in addition to a slew of important economic data releases.
At 12:34 Riyadh time, the dollar index, which tracks the US currency against a basket of six other currencies, fell slightly by 0.07% at 106.305 after the index rose by about 1% last week.
Federal Reserve meeting this week
The US dollar has been on the front foot lately, supported by signs of US economic strength, even after a long period of rate hikes by the Federal Reserve.
US consumer spending rose in September, while US consumer spending rose at its fastest pace in nearly two years in the third quarter.
Also, Federal Reserve policymakers meet this week and are expected to keep interest rates unchanged when the decision is announced on Wednesday.
However, traders are concerned that these strong numbers mean a signal that interest rates will rise for longer as concerns about overheating inflation persist.
Yen rebounds ahead of Bank of Japan meeting
It fell 0.1% to 149.50, with the yen getting a slight rebound after the pair rose to a one-year high of 150.78 last week.
The focus was squarely on Tuesday’s close, as the central bank is expected to announce further changes to its yield curve control policy, as a weaker yen grapples with rising inflation and tight monetary policy.
Recent data has shown an increasing rise in , which may prompt the Bank of Japan to signal plans to reduce its ultra-loose policy.
The euro fell after German and Spanish inflation data
It fell 0.1% to 1.0554, with the single currency falling after data showed inflation in the euro zone falling, just days after the longest string of interest rate hikes in its 25-year history closed last week, leaving the key interest rate at 4%.
Data released early Monday also showed that consumer prices rose 3.1% in October year-on-year in North Rhine-Westphalia, Germany’s most populous state, down from 4.2% the previous month.
In addition, it rose 0.3% month-on-month in October, below expectations of 0.6%, and rose 3.5% year-on-year, below expectations of 3.8%.
The Bank of England is on hold
It fell 0.2% to 1.2094, with the Bank also holding a policy meeting later in the week.
The central bank is widely expected to keep interest rates unchanged despite growing concerns about a recession, reaching 6.7% in September, the highest among the world’s major economies.
On the other hand, it rose by 0.3% to 0.6352, rose by 0.1% to 0.5820, and 2111 rose to 7.3185, with markets awaiting key Chinese data scheduled for Tuesday.
2023-10-30 10:37:00
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