The dollar continued to soar against a basket of major currencies on Monday, as investors are closely watching on the Federal Reserve’s approaching policy meeting this week.
EUR/USD dropped 0.46% to 1.10.
Meanwhile, the single currency continued to struggle as the European Central Bank began cutting interest rates through the euro zone to new record lows and made an advancement of its quantitative easing program last Thursday.
A record-low of zero from 0.05% was slashed off by the ECB on its benchmark interest rate, and pumped €20 billion per month to €80 billion for its quantitative easing program, effective April.
USD/JPY slightly moved at 113.78.
The results of the policy meetings of Japanese and U.S. central bank for this week, are eyed by many investors.
However, the U.S. central bank warned to raise rates if the U.S. inflation and jobs will remain solid.
After the meeting ended on Tuesday, the Bank of Japan is likely to halt monetary policy changes when it surprisingly decided to adopt negative interest rates in January, which slightly hurt the yen.
Furthermore, the dollar strengthens against the pound and the Swiss franc, with GBP/USD drop 0.47% at 1.43 and with USD/CHF up by 0.42% to 0.98.
Conversely, the Australian and New Zealand dollars soften, with AUD/USD fell 0.79% at 0.75 and with NZD/USD down 0.89% to 0.66.
USD/CAD rallied 0.56% to 1.32. Meanwhile, the commodity-related loonie declined as oil prices were dragged from three-month highs after announcements from Bijan Zanganeh, an Iranian Oil Minister turned down joining group production freeze unless its post-sanctions resulted double.
The U.S. dollar index, surges by about 0.43% at 96.64, far away from Friday’s one-month low of 95.94.
EUR/USD remained to retreat from three-week highs from last Thursday, as investors are eyeing on the meetings of the three major central banks this week.
The currency pair changed hands between 1.10 and 1.11 during Monday trading, before it settled at 1.11, which declined by about 0.0062 and 0.45% within the day.
Meanwhile, the euro strengthens 1.6% on Thursday against the greenback after the approval on a wide range of stimulus measures from the European Central Bank, with goals of improving the economic growth across the euro zone.
The euro settled higher by 1.11 against its U.S. counterpart in the last three consecutive sessions.
EUR/USD added by 1.07, with a low from January and later was witnessed the resistance at 1.13, the high from Feb.
The Bank of Japan (BOJ) is anticipated to remain its interest rates to remain unchanged after the Japanese central bank has shaken the global markets by surprisingly adopting a negative interest rate policy for the first time.
The BOJ cut rate charges to commercial banks, which park added reserves at the central bank to negative 0.1%. It aims to help its economy in avoiding deflation threats. In order to further make assistance on government over financial concerns,
The BOJ is making their hopes up to remain the yield curve lower in order to further make an assistance on government over financial concerns, by means of enabling public sector debt more affordable.
Furthermore, the Federal Reserve is scheduled to report monetary policy statement, next to the completion of its two-ay Federal Open Market Committee for March. Meanwhile, the Fed is anticipated to leave short-term interest rates unchanged, as the U.S. central bank can provide signs on a raising of interest rates in its tightening cycle for a decade.
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