The dollar started the week with a slight increase. Investors will closely follow more than 18 Fed speeches this week. These speeches may offer new clues about the US interest rate outlook.
Following the Fed’s decision last week to restart its interest rate reduction cycle, market pricing has aligned with the central bank’s message. Weakness in the labor market, in particular, has been a key factor in policy.
Recent data from the US shows a decrease in unemployment benefit applications, reversing the previous week’s increase.
Markets are now focused on the core PCE inflation data to be released on Friday.Statements from Fed Chairman Jerome Powell and other members are important. In particular, the opposition of new member Stephen Miran to a more aggressive 50 basis point rate cut will be closely watched by the markets.
On the currency front, the dollar index traded at 97.66, up 0.05%. The Euro remained flat at 1.1748, while the Swedish krone and yen depreciated slightly.
The pound sterling fell to a two-week low due to rising public debt and the Bank of England’s limited room for maneuver. The Australian dollar dropped to its lowest level since September. The Chinese yuan, meanwhile, slightly strengthened thanks to easing US-China trade tensions and Beijing keeping its policy interest rates unchanged.
