Currency markets subdued ahead of busy central bank week
TLT•Major currencies traded in tight ranges as markets prepared for central bank decisions, while lower oil prices and U.S. Treasury yields weighed on the dollar. The euro rose 0.15% to $1.1218, and the dollar index was little changed at 101.65.
1. Dollar weighed by yields
The dollar eased as oil prices and U.S. Treasury yields fell. Brent crude futures were down nearly 2% at $114.50 a barrel, while U.S. 10-year Treasury yields stood at 4.967% and 30-year yields at 5.299%. A report said Qatari mediators were in Tehran as part of efforts to de-escalate regional tensions.
2. Currencies trade narrowly
The euro rose 0.15% against the dollar to $1.1218 after Moody's left France's credit rating unchanged. Sterling strengthened 0.1% to $1.3379, while the Japanese yen was steady at 156.92 per dollar. The Australian dollar was flat at $0.7031 and the New Zealand dollar gained 0.05% to $0.5701.
3. Policy decisions ahead
The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates steady this week, while New Zealand and Canada's central banks are expected to raise rates. Investors are also watching U.S. consumer confidence, PCE inflation and jobless claims data. Earnings from Alphabet, Microsoft and Amazon are also due.
