Investors await three interest rate decisions from central banks this week
U.S. Dollar Index
The U.S. Dollar Index (DXY) grew by 0.18% on Friday despite falling consumer spending and cooling inflation.
Possible effects for traders:
U.S. Personal Consumption Expenditure (PCE) numbers aligned with expectations, while Michigan Consumer Sentiment Report turned out stronger than expected. Still, the latest data is unlikely to impact the upcoming Federal Reserve (Fed) decision. Markets expect a 25-basis-points (bps) rise from the Fed. Meanwhile, the Bank of England (BOE) and the European Central Bank (ECB) will probably opt for a 50-bps move. This divergence in monetary policies puts downward pressure on the U.S. dollar.
Today's economic calendar is relatively light, so previous short-term trends will probably continue, and the DXY may attempt to reach 102.50.
U.S. Dollar Index
The U.S. Dollar Index (DXY) grew by 0.18% on Friday despite falling consumer spending and cooling inflation.
Possible effects for traders:
U.S. Personal Consumption Expenditure (PCE) numbers aligned with expectations, while Michigan Consumer Sentiment Report turned out stronger than expected. Still, the latest data is unlikely to impact the upcoming Federal Reserve (Fed) decision. Markets expect a 25-basis-points (bps) rise from the Fed. Meanwhile, the Bank of England (BOE) and the European Central Bank (ECB) will probably opt for a 50-bps move. This divergence in monetary policies puts downward pressure on the U.S. dollar.
Today's economic calendar is relatively light, so previous short-term trends will probably continue, and the DXY may attempt to reach 102.50.