The dollar fell slightly after rising in early European trade on Monday, maintaining last week’s strength at the start of a week that includes numerous central bank meetings, the most important of which is the Federal Reserve meeting, in addition to a large number of important economic meetings. data releases.
At 12:34 pm Riyadh time, the dollar index, which tracks the US currency against a basket of six other currencies, edged down 0.07% to 106.305 after rising around 1% last week.
Federal Reserve meeting this week
The US dollar has been in the spotlight of late, supported by signs of US economic strength, even after a long period of interest rate hikes by the Federal Reserve.
U.S. consumer spending rose in September, while the economy grew at its fastest pace in nearly two years in the third quarter.
In addition, Federal Reserve policymakers are meeting this week, and the central bank is expected to keep interest rates unchanged when it announces its decision on Wednesday.
However, traders are concerned that these high figures could signal that interest rates will rise for longer as concerns about overheating inflation persist.
The yen rebounds before the Bank of Japan meeting
JPY/USD fell 0.1% to 149.50, with the yen gaining a slight rebound after the pair hit a one-year high of 150.78 last week.
The attention was on the completion of the Bank of Japan meeting on Tuesday when the central bank is likely to announce more revisions to its yield curve management strategy, as the yen struggles with increasing inflation and tight monetary policy.
Recent data has shown an upward trend in consumer inflation in Japan, which could prompt the Bank of Japan to signal its intention to reduce its ultra-accommodative policy.
Euro falls after German and Spanish inflation data
The EUR/USD pair fell 0.1% to 1.0554, the single currency tumbling after data showed a drop in inflation in the eurozone, just days after the European Central Bank last week completed the longest series of interest rate hikes in its 25-year history. I’m off… The key interest rate is 4%.
Data released on Monday morning also showed that consumer prices rose by 3.1% year-on-year in October in North Rhine-Westphalia, Germany’s most populous Land, compared with 4.2% the previous month.
In addition, Spain’s CPI rose by 0.3% month-on-month in October, below expectations of 0.6%, and by 3.5% year-on-year, below expectations of 3.8%.
Bank of England at a standstill
GBP/USD fell 0.2% to 1.2094, as the Bank of England also held a policy meeting later in the week.
The central bank is widely expected to keep interest rates unchanged despite growing fears of a recession, with inflation reaching 6.7% in September, the highest among the world’s major economies.
On the other hand, the Australian dollar/US dollar currency pair rose 0.3% to 0.6352, the New Zealand dollar/US dollar currency pair rose 0.1% to 0.5820, and {{2111|Chinese yuan vs. US dollar}} rose to 7.3185, with markets awaiting key Chinese PMI data due on Tuesday.
