US Dollar Volatile Before Federal Open Market Committee


As investors shifted their attention to this week’s inflation statistics and the minutes of the Federal Open Market Committee meeting from March 19–20, the US dollar had mixed results against its main trading partners early on Monday. It was up against the euro and yen, but down against the pound and Canadian dollar.

Data on consumer sentiment and corporate conditions are among Tuesday’s highlights. The week will center on Wednesday’s agenda, which includes the FOMC minutes and March consumer pricing data.

The producer pricing data and weekly unemployment claims are the highlights of Thursday. On Friday, import and export price data and the preliminary Michigan confidence reading for April are scheduled.

The European Central Bank meets on Thursday, and the Bank of Canada meets on Wednesday to discuss monetary policy.

A quick summary of foreign exchange activity heading into Monday shows that USDEUR fell to 1.0831 from 1.0836 at the Friday US close and 1.0834 at the same time Friday morning. Naira Devaluation Deepens Economic Crisis in Nigeria

Eurozone investor confidence improved in April but continued to indicate more pessimism than optimism, data released earlier Monday showed. The The European Central Bank will meet again on Thursday, if there is no change in interest rates is expected.

GBPUSD rose to 1.2633 from 1.2631 at the Friday US close and 1.2629 at the same time Friday morning. There are no UK data on Monday’s schedule, but Bank of England policy board member Sarah Breeden is set to speak today. The next Bank of England meeting is scheduled for May 9.

USDJPY rose to 151.8861 from 151.5472 at the Friday US close and 151.3843 at the same time Friday morning. Japanese wage growth slowed in February while the current account narrowed in the same month, data released overnight showed. A separate survey showed a deterioration in services business confidence in March. The next Bank of Japan meeting is scheduled for April 25-26.

USDCAD fell slightly to 1.3590 from 1.3592 at the Friday US close but was up from a level of 1.3561 at the same time Friday morning.

There are no Canadian data on Monday’s schedule. The next Bank of Canada meeting is set for Wednesday when interest rates are expected to be held steady.

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