These include news on Britain’s budget, a meeting of the European Central Bank, U.S. jobs data, and significant political moments in China and the U.S.
The dollar dropped against the euro on Monday, as investors awaited important updates on various economic and political events. These include news on UK’s budget, a meeting of the ECB, U.S. jobs data, and significant political moments in China and the U.S.
Investors also kept a close eye on Bitcoin, which hit a fresh high above $65,000 after a comparatively calm weekend. The recent jump in Bitcoin’s value can be attributed to substantial investments in crypto currency ETFs, especially in the US. At present, Bitcoin is up by 6.39% at $66,603.
In the meantime, the euro firmed 0.15% against the dollar, while the dollar index experienced a marginal decline of 0.03% at $103.83.
The Japanese yen remained comparatively steady near the significant 150-per-dollar mark.
The dollar, on the other hand, saw a modest rise of 0.28% against the yen, reaching 150.555 yen.
Most major currency pairs stayed within their recent trading ranges, as traders refrained from making significant bets in anticipation of the upcoming market-moving events this week.
FX markets are – once again – operating with an abundance of caution ahead of lots of new info this week, according to Helen Given, FX trader at Monex USA in Washington.
No one wants to get stung on any surprise, so I’d be surprised if flows do not remain muted in the front half of this week, she added.
Ahead of the British budget announcement on Wednesday, the pound sterling saw an increase of 0.32% vs. the dollar, reaching $1.2693. Finance Minister Jeremy Hunt has been working to temper speculation regarding substantial tax cuts before the upcoming election.
In addition, the ECB is scheduled to hold a meeting on Thursday. While some ECB policymakers have expressed caution about potential interest rate cuts in the near future, no definitive statements have been made.
On Monday, the Swiss franc briefly surged following the release of Swiss February inflation data, which exceeded expectations at 1.2% compared to the previous year. However, it still remained below January’s level and well within the Swiss National Bank’s target range of 0-2%. The dollar, in relation to the franc, experienced a slight increase of 0.22%, reaching 0.88495 francs.
