The US dollar experienced a setback against major global currencies on Monday, as attention shifted towards April’s home sales data and upcoming public remarks from Federal Reserve officials.
Against the euro, the greenback slid as the EUR/USD pair rose to 1.1277, compared to 1.1151 at last Friday’s US close and 1.1202 from the previous morning’s rates. The euro’s upward movement followed the release of April’s Eurozone inflation figures, which met analysts’ expectations. Investors are now looking ahead to the next European Central Bank meeting set for June 4–5.
Sterling also gained ground, with the GBP/USD climbing to 1.3386 from Friday’s close of 1.3276 and Friday morning’s 1.3295 rate. The British economic calendar remained quiet on Monday, as market participants await the Bank of England’s next rate-setting meeting on June 19.
Meanwhile, the US dollar depreciated against the Japanese yen, with USD/JPY falling to 144.9221 from 145.9132 at the close of last week’s trading. The decline followed new data showing a rise in Japanese business services purchases for March. The next Bank of Japan policy meeting is scheduled for June 16–17.
In Canada, the USD/CAD pair slipped to 1.3945, down from 1.3976 at Friday’s close. The Canadian market was closed on Monday due to a public holiday, and no domestic economic data were released. Traders are anticipating the next Bank of Canada meeting on June 4.
Adding to the dollar’s woes was Friday’s decision by Moody’s to downgrade the United States’ top-tier sovereign credit rating by one notch. The rating agency cited the nation’s soaring debt, which now stands at $36 trillion, as a primary concern.
This downgrade followed a four-week rally in the dollar, bolstered by improved sentiment around trade negotiations and a slight easing of US-China tensions. The recent shift in outlook, however, has renewed concerns about the US fiscal position and its impact on the global currency landscape.
