Dollar stable as US Fed eyes inflation
Dollar stable against foreign currencies ahead of U.S. inflation data
On Monday, the foreign exchange markets witnessed a stable performance against the U.S. dollar, as several major Asian markets observed a holiday, contributing to a relatively quiet start to the week.
The focus for investors is now directed toward upcoming U.S. inflation data, which is anticipated to provide crucial insights into the Federal Reserve's potential actions regarding interest rates.
The euro exhibited a slight retreat, edging down to $1.0778 after touching a 10-day high in early trading. This movement followed a modest rebound last week, departing from its consistent declines throughout 2024.
Analysts and investors eagerly await a reading of the euro zone's economic growth in the fourth quarter, scheduled for release on Wednesday, which could offer fresh direction for the single currency.
Recent vital jobs data in the U.S., released earlier this month, has led many market participants to reevaluate the likelihood of a Federal Reserve rate cut in March. As a result, the prevailing sentiment now leans towards a potential move in May instead of March.
Source: Newsroom
