USD Falls Against GBP, German Fiscal Plan Boosts EUR
The US dollar (USD) fell against its major trading partners early Monday ahead of a busy week that starts off fast on Monday. The Federal Open Market Committee’s FOMC rate decision is the main event of the week Wednesday, while weekly mortgage applications and oil stocks data start the day.
The US dollar fell to 103.6, hovering close to five-month lows due to growing economic concerns and trade uncertainties in the US. With the Federal Reserve’s policy decision approaching on Wednesday, markets expect the Fed to keep interest rates steady amid concerns over President Trump’s economic policies.
The euro approached $1.09, hovering near November highs, as traders awaited further updates on Germany’s fiscal stimulus. Germany has secured a fiscal deal to boost defense spending and stimulate growth in the Eurozone’s largest economy.
The important spending plan vote is set for this week, with the proposed reform that exempted defense spending from debt limits and establishing a €500 billion infrastructure investment plan, expected to pass in both Germany’s lower and upper houses.
A quick summary of foreign exchange activity heading into Monday showed USDEUR rose to 1.0907 from 1.0883 at the Friday US close and 1.0898 at the same time Friday morning.
There are no Eurozone data on Monday’s schedule, but European Central Bank policy board member Christine Lagarde is due to speak. The next European Central Bank meeting is scheduled for April 16-17.
GBPUSD rose to 1.2971 from 1.2932 at the Friday US close and 1.2940 at the same time Friday morning. There are no UK data on Monday’s schedule. The next Bank of England meeting is scheduled for Thursday, when no change in rates is expected.
USDJPY fell to 148.5361 from 148.6113 at the Friday US close and 148.7792 at the same time Friday morning. There were no Japanese data released overnight.
The next Bank of Japan meeting is scheduled for Tuesday and Wednesday Japanese time this week, with no change in the policy rate expected when the post-meeting statement is released late Tuesday evening US time.
USDCAD fell to 1.4351 from 1.4361 at the Friday US close and 1.4435 at the same time Friday morning. Canadian housing starts data for February are due to be released, followed by Canadian foreign securities purchases data. The next Bank of Canada meeting is scheduled for April 16. #USD Falls Against GBP, German Fiscal Plan Boosts EUR South African Market on Edge Before Budget Shut Down
