By Tom Westbrook
SYDNEY, July 24 (Reuters) - The dollar and euro made
firm starts on Monday to a week full of central bank meetings,
while the yen was struggling as investors expect the Bank of
Japan will be the odd one out as policymakers hike rates in
Europe and the United States.
The Federal Reserve concludes a meeting on Wednesday,
followed by the European Central Bank a day later and the Bank
of Japan on Friday.
The yen had dived on the dollar and crosses last week
following a Reuters report that the Bank of Japan was leaning
towards keeping its yield curve control policy unchanged, though
volatility gauges have spiked as the meeting looms as a risk.
The yen was nursing losses at 141.71 to the dollar
early on Monday and at 157.58 to the euro, it wasn't
much above last week's 15-year low at 158.04, nor was it far
from last week's record low on the Swiss franc.
The euro held at $1.1128 on Monday. The U.S.
dollar index was steady at 101.04.
"The last week left markets believing in a soft-landing
scenario for the U.S. markets where the (Fed) ends its hikes ...
and then sees a steady drop in CPI without a recession," said
Bob Savage, head of markets strategy at BNY Mellon.
"The ECB is also expected to be near the end with the German
technical recession easing and growth holding elsewhere. The BOJ
is seen talking about change but not doing much."
The yen's Friday fall helped the dollar to gains on the
Australian and New Zealand dollars and they were steady near
recent lows early on Monday. The Aussie was testing
support at its 200-day moving average at $0.6722.
The kiwi, which broke below its 200-dma on Friday,
sat at $0.6172. It is under pressure as the central bank
believes it is finished hiking rates and export prices have
dragged as China's post-pandemic recovery has disappointed.
"As long as dairy prices remain under pressure, the New
Zealand dollar is unlikely to thrive," said ANZ analysts.
On the data front, traders will be watching out for
Purchasing Manager's Index figures due across the globe through
the trading day on Monday.
========================================================
Currency bid prices at 0031 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar
$1.1131 $1.1124 +0.04% +3.86% +1.1138 +1.1124
Dollar/Yen
141.6650 141.7400 -0.06% +0.00% +141.8000 +141.6550
Euro/Yen 157.68 157.76 -0.05% +12.39% +157.7800 +157.5700
Dollar/Swiss
0.8659 0.8660 +0.01% -6.34% +0.8664 +0.8660
Sterling/Dollar
1.2866 1.2852 +0.08% +6.35% +1.2866 +1.2853
Dollar/Canadian
1.3218 1.3224 -0.04% -2.44% +1.3227 +1.3219
Aussie/Dollar
0.6730 0.6732 -0.04% -1.28% +0.6733 +0.6723
NZ
Dollar/Dollar 0.6174 0.6166 +0.11% -2.80% +0.6174 +0.6165
All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
(Reporting by Tom Westbrook.
Editing by Shri Navaratnam)
Yen pressured as traders wait on policy decisions
July 23, 2023 at 08:47 pm EDT
Share
Share
