Euro weaker in Asia as attention turns to Wyoming meeting
The euro fell in Asia on Monday as attention turns to a meeting of central bankers in Wyoming this week to see if the European Central Bank will start to discuss its dial-back plans for stimulus in more detail.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.04% to 93.40.
Coming up this week, investors will be looking ahead to speeches by central bankers at the Fed’s annual central bank symposium in Jackson Hole, Wyoming. European Central Bank President Mario Draghi is key as he has lagged a discussion so far underway in the US. and broached in Japan on the timing and methods to wind down asset buying programs.
As well, U.S. data on housing and durable goods to gauge how it will impact on Fed policy, while the euro zone is to release data on private sector activity.
Last week, the dollar fell against a basket of the other major currencies on Friday as U.S. political uncertainty and growing doubts over the prospects for another rate hike by the Federal Reserve this year weighed.
The greenback fell to four month lows against the Japanese currency earlier in the day but pared losses after reports that senior White House advisor Steven Bannon was leaving his post.
Ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Fed will deliver a third rate hike this year have fed into recent dollar weakness.
The dollar surged to 14-year highs after Trump’s November election on hopes that his plans for fiscal stimulus and tax reform would bolster the economy. The dollar has since given up its post-election gains amid mounting concerns about the administration’s ability to deliver on its agenda.
Lower rates typically weigh on the dollar by making U.S. assets less attractive to yield-seeking investors.
The euro posted its third consecutive weekly gain against the pound, rising 0.56% amid growing expectations that the Bank of England will keep interest rates on hold in the coming months amid concerns over the economic fallout from Brexit