Dollar Little Changed Ahead of Central Bank Dominated Week

The dollar was steady against a basket of the other major currencies on Monday as investors positioned ahead of a number of key central banks meetings this week that could help determine near-term market direction for currencies.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading at 94.49 by 03:04 AM ET (07:04 AM GMT), almost unchanged for the day, after edging lower on Friday.

The greenback dipped but held near one-week highs Friday as data showing that the U.S. economy grew at the fastest rate in four years in the second quarter was offset by concerns that trade tensions would act as a drag on growth in the second half of the year.

The data underlined expectations for the Federal Reserve to continue hiking rates this year, but economists are concerned that the surge in second quarter growth may not be sustainable.

Market participants were looking ahead to the conclusion of the Fed’s two-day policy meeting on Wednesday, where it will probably flag up its third rate hike this year in September.

The Bank of Japan is to meet on Tuesday, amid speculation that it is considering changes to its massive asset purchase program.

The Bank of England is to deliver its interest rate decision on Thursday, with most analysts expecting a quarter point rate increase.

The dollar was steady against the euro in rangebound trade, with EUR/USD at 1.1657.

Against the yen, the dollar edged higher, with USD/JPY inching up 0.08% to 111.12.

The pound was little changed against the dollar and the euro, with GBP/USD at 1.3107 and EUR/GBP at 0.8890.

The Australian dollar was a touch lower, with AUD/USD dipping 0.08% to 0.7393, while the New Zealand dollar inched up, with NZD/USD last at 0.6801./investing.com

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