Meetings of several central banks today
The dollar on Monday fluctuated obliquely towards the decline ahead of a crucial week full of decisions by central banks, led by the Federal Reserve.
Asian markets saw light trading, with markets in Japan closed for an official holiday, which made currencies move in a narrow range during the session.
Let's take a quick look at some currency pairs today:
EURUSD
The euro came under some pressure and retreated slightly after Fitch announced on Friday, lowering the sovereign credit rating of France to an all-time low.
The agency stripped France, the second largest economy in the eurozone, of its AA-rating, as it suffers from a political crisis and its debt inflation.
However, most of investors ' attention this week will be focused on the series of interest rate decisions in the US, Japan, the UK and Canada, which may determine the course of the markets, with the Fed remaining at the forefront of events.
It is now expected that the interest rate will be cut by 25 basis points during the meeting next Wednesday, with the market expecting surprises by cutting 50 basis points.
AUDUSD
The Australian dollar rose by 0.23% to 0.6665 US dollars, approaching its 10-month high set last Friday.
USDJPY
The Japanese yen rose by more than 0.1% to 147.33 to the dollar, ahead of the Bank of Japan (BoJ) monetary policy meeting later in the week.
While the Bank of Japan is expected to keep interest rates unchanged, the focus will similarly be on Governor Kazuo Ueda's comments on the future policy path.
The Central Bank of Japan will have to give a signal of the possibility of raising interest rates as soon as possible, perhaps next month, to stimulate a reversal of the weakening of the Japanese yen.
The performance of the Japanese Yen continues to weaken in the near term, influenced by the growing political uncertainty in Japan after the resignation of prime minister Ishiba.
USDCNY
The Chinese yuan rose slightly as a result of the weakening US dollar, despite the negative economic data released on Monday.
Talks between us and Chinese officials were also of interest to investors.
On Sunday, the two sides concluded the first day of talks in Madrid on their strained trade relations.
