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Forex - U.S. Dollar, Euro Near Flat as Traders Await Central Bank Meetings

Published 09/12/2019, 03:57 pm
Updated 09/12/2019, 03:59 pm
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Investing.com - The U.S. dollar and the euro were little changed on Monday in Asia as traders await central bank meetings due later this week.

The U.S. Dollar Index was little changed at 97.685 by 11:57 PM ET (03:57 GMT). The Federal Reserve is expected to keep rates steady on Wednesday this week at the conclusion of its policy meeting. The Fed has cut rates three times this year to shield the U.S. economy from a global slowdown.

After the last rate cut, in October, Fed Chair Jerome Powell said both the economy and policy were in a "good place" and indicated that policymakers saw little need to cut rates further.

"I think they are feeling really good right now that they’ve decided to put this thing on pause,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.

On the data front, The American consumer price inflation figures is due this week ahead of the Fed meeting, which are expected to show inflation running at 2%, while retail sales numbers on Friday are forecast to show growth of 0.4%.

The USD/CNY pair last traded at 7.0329, up 0.01%, after data showed the country’s exports dropped 1.1% year-on-year in November, compared with the expected 1.0% expansion.

Meanwhile, the EUR/USD pair was also near flat at 1.1055. Christine Lagarde will hold her first meeting and news conference as European Central Bank (ECB) president on Thursday.

The ECB is not expected to make any significant change to monetary policy. However, traders will pay attention to Lagarde’s wordings for her thoughts on the monetary policy outlook, the economy and an upcoming strategy review.

The GBP/USD pair inched up 0.1% to 1.3143 as traders continued to await a U.K. general election this week that will determine the course of Brexit.

The USD/JPY pair was unchanged at 108.57.

The AUD/USD pair and the NZD/USD pair both slipped 0.1%.

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