The dollar held gains against major peers as signs of economic recovery supported the case for the Federal Reserve to normalize policy. New Zealand’s currency fell for a third day after producer prices declined.
The Bloomberg Dollar Spot Index rose from a two-week low before the Labor Department releases consumer-price data today and as Federal Reserve Chair Janet Yellen and central bankers prepare to meet at an annual conference in Jackson Hole, Wyoming. The euro held the biggest loss in almost two weeks before a report this week economists forecast will show manufacturing activity in the region slowed and amid speculation the European Central Bank will expand monetary stimulus.
“It’s all but certain the Fed will move before the ECB and the Bank of Japan, where the expectation is for more policy easing,” said Yujiro Goto, a currency strategist in London at Nomura Holdings Inc., Japan’s largest brokerage. “The policy divergence is a positive for the dollar, and I don’t expect the outlook to change this week.”
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.