US Dollar Declines in FX Market Ahead of FOMC
The US dollar fell against its major trading partners in the forex market on Monday as attention turned to the Federal Open Market Committee meeting scheduled for Wednesday.
For today, the dollar is weak with the risk mood leaning towards the softer side. S&P 500 futures are down 0.7%, and that’s seeing the dollar down across the board.
The CME’s Fed Watch tool shows a 96.9% chance being priced in that the FOMC will hold its target range for its federal funds rate at 4.25% to 4.50% and a 3.1% chance of it being lowered to 4.00% to 4.25%.
A quick summary of foreign exchange activity revealed that EURUSD rose to 1.1340 from 1.1300 at the Friday US close and 1.1326 at the same time Friday morning.
Eurozone investor confidence improved in May but still indicated more pessimism than optimism. The next European Central Bank meeting is scheduled for June 4-5.
GBPUSD rose to 1.3317 from 1.3274 at the Friday US close and 1.3295 at the same time Friday morning. Monday is a holiday in the UK, so there are no data on the schedule.
The next Bank of England meeting is scheduled for Thursday, when a 25 basis point rate reduction is expected. USDJPY fell to 143.8021 from 145.0191 at the Friday US close and 144.4982 at the same time Friday morning. Monday is holiday in Japan so there were no data released overnight. The next Bank of Japan meeting is scheduled for June 16-17.
USDCAD fell to 1.3794 from 1.3810 at the Friday US close and 1.3820 at the same time Friday morning. Canadian reserve assets data for April are due to be released. The next Bank of Canada meeting is scheduled for June 4. #US Dollar Declines in FX Market Ahead of FOMC#
