The euro rose but the Fed decision might change the scenario. It rose after the European Central Bank’s hawkish turn last week. However, analysts said further short-term gains seemed unlikely to happen as the Fed tightening might support the dollar.
On Monday morning, the euro appeared near Friday’s three-week high.
In the meantime, Bitcoin held around a two-week high in cryptocurrency markets.
Investors this week will observe the U.S. inflation data due Thursday. They gave expectations that the Fed would raise rates at its March meeting while indicating the possibility of a significant 50 basis point rise.
The euro EUR=EBS was last at $1.1452, not far from Friday’s high of $1.4184, equalling mid-January’s top.
The yen was at 115.17 per dollar, and the sterling was at $1.35311, both in the middle of their recent ranges.
This process left the dollar index at 95.462. On Friday, the U.S. jobs data boosted it slightly at the end of a bruising week for the greenback.
Analysts also expect that it could gain further in the short term.
Head of international economics at Commonwealth Bank of Australia, Joe Capurso, released a morning note. He said they see the risk of more USD upside in the near term if the interest rate rises in March. However, he added that the last week’s hawkish turn by ECB President Christine Lagarde shows any upside in the USD will be limited.
Benchmark 10-year yields stood at 1.9048%.
This week, policymakers at the Fed and the British, European, Australian, and Canadian central banks have also scheduled speeches.
The Dutch Central Bank president and one of the more hawkish members of the ECB’s governing council, Klaas Knot, said he expects a hike in the fourth quarter of this year on Sunday. Bitcoin traded at around $41,900, having jumped 12% late on Friday. The Australian dollar was at $0.7072. The Aussie is also weak against other currencies touching its lowest since September versus the euro.
Interested in Forex Trading? Read WiBestBroker’s comprehensive Soltechx Review.
Quick Look: Bitcoin price currently consolidates around $57,000, down by 5%; Fed maintains high interest… Read More
Quick Look: Microsoft invested $1 billion in OpenAI in 2019 to catch up with Google… Read More
Ethereum in Ascending Channel: Risk at $3,000, Upside to $3,500 Quick Look: Bullish Channel: Ethereum… Read More
PayPal's Strong Start in 2024: $403.9B Payment Volume Surge Quick Look: Significant Volume Increase: PayPal… Read More
XTB announced its entry into the UK's £400 billion ISA market less than a quarter… Read More
In this BTN Centre review, we will embark on a trading journey, where cutting-edge technology… Read More