© Reuters. FILE PHOTO: A woman holds US dollar bills in this illustration taken on May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
By Ankur Banerjee
SINGAPORE (Reuters) – The US dollar fell broadly on Monday as investors awaited testimony from Federal Reserve Chairman Jerome Powell and looked to a February jobs report later in the week that is likely to influence hawkishness in the US central bank.
The , which measures the US currency against six major pairs, was down 0.182% at 104.420. Last week, the index posted a weekly loss for the first time since January.
After making mammoth hikes last year, the Fed raised interest rates by 25 basis points in its last two meetings, but a string of resilient economic data has stoked market fears that the central bank could return to its aggressive path. .
Futures imply a 72% chance the Fed will raise interest rates by 25 basis points at its March 22 meeting.
The focus will be firmly on the February jobs report scheduled for Friday and Fed Chairman Jerome Powell’s testimony before Congress on Tuesday and Wednesday.
“US core inflation remains stubbornly high, well above the Fed’s 2% inflation target,” said Joseph Capurso, head of international and sustainable economics at the Commonwealth Bank of Australia (OTC:).
Recent data suggests that consumer spending is not slowing much while the job market is unsustainably tight, Capurso said in a note, adding that Powell would likely be aggressive in his testimony.
Citi strategists expect Powell to indicate a preference for a 25bp increase, but leave all options on the table as he will speak before the jobs data is released.
Citi expects a payroll increase of 255,000 after January’s huge jump of 517,000. A big surprise to the upside could lead to a 50bp hike by the Fed, Citi said.
Meanwhile, the euro was up 0.07% at $1.0641, after gaining 0.8% last week, while sterling last traded at $1.2029, up 0.09%. less in the day.
The Japanese yen strengthened 0.10% to 135.74 per dollar ahead of Friday’s final policy meeting for Bank of Japan Governor Haruhiko Kuroda.
If Kuroda ends his term on a very dovish tone, that could spell trouble for the yen, especially if US yields continue to rise this week, strategists at Saxo Markets said.
Elsewhere, China’s yuan weakened on Monday, a day after the country set a modest 2023 economic growth target of around 5%. On the spot market, it opened at 6.9072 to the dollar and last changed hands at 6.9137.
In cryptocurrencies, bitcoin rose 0.53% to $22,363.00, after falling 5% on Friday. last fell 0.02% to $1,559.00.
The Australian dollar fell 0.21% to $0.675, while the latter settled at $0.621, down 0.16%.
==================================================== ======
Forex Bid Prices at 0557 GMT
Description RIC Last US YTD Closing Percent Change Percent High Bid Low Bid
previous change
Session
Euro/Dollar $1.0647 $1.0634 +0.13% -0.63% +1.0650 +1.0615
Dollar/Yen 135.7550 135.8000 -0.13% +3.34% +135.9300 +135.4000
Euro/Yen 144.53 144.46 +0.05% +3.01% +144.6000 +144.1300
Dollar/Switzerland 0.9358 0.9361 -0.03% +1.21% +0.9372 +0.9355
British Pound/Dollar 1.2034 1.2043 -0.07% -0.49% +1.2047 +1.2024
Dollar/Canada 1.3596 1.3599 -0.01% +0.35% +1.3614 +1.3585
Aussie/Dollar 0.6754 0.6769 -0.21% -0.91% +0.6769 +0.6742
New Zealand 0.6211 0.6223 -0.19% -2.18% +0.6225 +0.6208
dollar/dollar
All the places
places in tokyo
places in europe
volatilities
BOJ Tokyo Forex Market Information