US dollar remained flat in a tight range.
The US Dollar Index trades in the mid-103.00s and is predicted to remain stable.
The US Dollar (USD) is enjoying a bit of calm on Monday. Before the Bank of Japan’s (BoJ) rate decision on Tuesday. And the US Federal Reserve rate decision on Wednesday. Both meetings will be critical.
Traders are bracing for a historic week, with the BoJ preparing to end its decade-long negative interest rate regime.
The BoJ is prepared to depart decades of negative interest rate policy. While attempting not to shock markets. And the Fed will provide signals over The interest rate outlook following the recent high inflation statistics has got traders worried.
Monday’s US economic schedule is sparse. For further important data points, look to Thursday’s preliminary Purchasing Managers Index (PMI) data for March. Right before the end of the week, three Fed members. Including Fed Chairman Jerome Powell, will offer speeches and statements that could further influence markets if the rate decision on Wednesday was not clear enough.
Russian President Vladimir Putin was re-elected to another term on Sunday. Preparing markets for the BoJ. Despite Putin’s assertions that peace talks with Ukraine will not take place. China has stated that it want to begin peace talks.
The Bank of Japan is likely to tailor its For the first time in decades. Policy rates have shifted away from negative territory. Markets appear to be generally anticipating the move, with Japanese share markets rising more than 2% ahead of the meeting overnight on Tuesday.
People’s Bank of China (PBoC) surprised the market by fixing the USD/CNY at 7.0943.
On Monday, the People’s Bank of China (PBoC) surprised the market by fixing the USD/CNY at 7.0943, versus the predicted 7.1993. This comes after analysts speculated that the PBoC was easing off on its stronger fixing following a surprising weaker currency rate on Friday. Currency markets have not reacted significantly to the fixing.
Monday’s US data calendar begins at 14:00 GMT with the NAHB Housing Market Index for March. February showed contraction at 48, and the same is projected for March.
The US Treasury Department will allot a 3-month period a 6-month bill at 15:30 GMT.
Equities are off to a strong start this week. The Japanese Nikkei and Topix are both up more than 2% on Monday.
The CME Group’s FedWatch Tool predicts a Fed pause at the March 20 meeting, with a 1% chance of a rate drop.
The benchmark 10-year US Treasury Note trades around 4.30%, maintaining its upward trend from last week.
