Currency markets subdued ahead of pivotal central bank week
TLT•Major currencies traded in tight ranges as investors awaited decisions from five central banks. The dollar eased as Treasury yields fell, while oil prices pulled back from six-month highs.
1. Currencies trade narrowly
Major currencies traded in tight ranges on Monday ahead of a week of central bank decisions and corporate earnings. The dollar index was slightly weaker at 101.64; the euro rose 0.16% to $1.122 and sterling strengthened 0.1% to $1.3385.
2. Yields and oil ease
US Treasury yields remained near one-month lows, with the 10-year yield at 4.974% and the 30-year at 5.299%. Brent crude futures fell more than 1% to around $115 a barrel after reaching a six-month high last week; Qatari mediators were reportedly in Tehran as part of efforts to de-escalate regional tensions.
3. Central banks in focus
The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates steady, while markets are pricing in potential hikes from the Bank of Canada and Reserve Bank of New Zealand. US consumer confidence, PCE price index and jobless claims data are also due this week.
