Euro firms against dollar, yen ahead of central bank meetings
SPY•The euro rose 0.10% to $1.1228 and 0.25% to 176.15 yen on Monday as oil prices eased and investors awaited central bank decisions. Five major central banks are set to announce policy decisions later this week.
1. Euro edges higher
The euro rose against the dollar and yen on Monday after Moody’s left France’s credit rating unchanged, easing pressure on French government bonds. Brent crude futures also fell after reports that Qatari mediators were in Tehran to help de-escalate regional tensions.
2. Central banks in focus
The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates steady, while New Zealand and Canada’s central banks are expected to raise rates. Investors will look for clues about the rate outlook, including whether French fiscal concerns affect expectations for ECB policy.
3. Brazilian real under pressure
The Brazilian real was set to fall sharply against the dollar after Luiz Inacio Lula da Silva won a fourth term. An analyst cited Brazil’s budget deficit and net debt-to-GDP ratio as vulnerabilities in a global bond selloff.
