A Busy Week With Important Events! This Is What's Happening In The Market
The dollar traded flat against the euro on Tuesday as investors focused on European Central Bank rate decisions and US jobs data.Bitcoin is near record highs as the latest wave of crypto mania shows no signs of abating, while China's yuan remains steady after Beijing set a high economic growth target of around 5% for 2024, as widely expected.The US dollar appears constrained in a very busy week of political and economic events, with the euro trading at $1.085, after previously testing resistance around $1.0867.The US dollar index, which measures the major currency against six other major currencies, rose slightly to 103.89."The market is relatively stable," said Alvin Tan, chief FX Asia strategist at RBC Capital Markets, referring to the high level of correlation in global bond markets, which has reduced opportunities for currency movements.The ECB will meet to discuss policy on Thursday and is widely expected to leave interest rates at a record 4%. Investors will be watching for any indication of when interest rates will be cut.Survey data on Tuesday showed that business activity in the European region showed signs of recovery last month.US jobs figures for February have the potential to change the course of the market on Friday. Economists had expected a decline in job hiring last month but the larger-than-expected number could add to the US dollar's 2.5% strengthening this year so far.Before that, on Thursday, Federal Reserve Chairman Jerome Powell will testify to Congress about inflation and the economy.Early news from China's National People's Congress contained few surprises, with Beijing maintaining its 5% economic growth target and 3% budget deficit. Analysts at Nomura said the growth target would be challenging to achieve without more stimulus.The spot yuan opened at 7.1950 per US dollar and eventually traded at 7.1991, while the offshore yuan remained steady at $7.2127.The dollar was unchanged at 150.42 yen, again avoiding resistance around 150.85, which has capped the currency for more than three months now.Powell is likely to emphasize the message that the Fed wants to wait for more data in his testimony to Congress.Sterling eased slightly to $1.2681 ahead of Britain's budget on Wednesday. Chancellor of the Exchequer Jeremy Hunt has tried to quell speculation about big tax cuts ahead of the election.
The dollar traded flat against the euro on Tuesday as investors focused on European Central Bank rate decisions and US jobs data.
Bitcoin is near record highs as the latest wave of crypto mania shows no signs of abating, while China's yuan remains steady after Beijing set a high economic growth target of around 5% for 2024, as widely expected.
The US dollar appears constrained in a very busy week of political and economic events, with the euro trading at $1.085, after previously testing resistance around $1.0867.
The US dollar index, which measures the major currency against six other major currencies, rose slightly to 103.89.
"The market is relatively stable," said Alvin Tan, chief FX Asia strategist at RBC Capital Markets, referring to the high level of correlation in global bond markets, which has reduced opportunities for currency movements.
The ECB will meet to discuss policy on Thursday and is widely expected to leave interest rates at a record 4%. Investors will be watching for any indication of when interest rates will be cut.
Survey data on Tuesday showed that business activity in the European region showed signs of recovery last month.
US jobs figures for February have the potential to change the course of the market on Friday. Economists had expected a decline in job hiring last month but the larger-than-expected number could add to the US dollar's 2.5% strengthening this year so far.
Before that, on Thursday, Federal Reserve Chairman Jerome Powell will testify to Congress about inflation and the economy.
Early news from China's National People's Congress contained few surprises, with Beijing maintaining its 5% economic growth target and 3% budget deficit. Analysts at Nomura said the growth target would be challenging to achieve without more stimulus.
The spot yuan opened at 7.1950 per US dollar and eventually traded at 7.1991, while the offshore yuan remained steady at $7.2127.
The dollar was unchanged at 150.42 yen, again avoiding resistance around 150.85, which has capped the currency for more than three months now.
Powell is likely to emphasize the message that the Fed wants to wait for more data in his testimony to Congress.
Sterling eased slightly to $1.2681 ahead of Britain's budget on Wednesday. Chancellor of the Exchequer Jeremy Hunt has tried to quell speculation about big tax cuts ahead of the election.
