Dollars in Asia
Investing.com — The dollar edges higher in early Asia on Monday with retail from Tokyo.
USD/JPY changed hands at 113.72. up to 0.03%, while AUD/USD traded 0.7674, down 0.04%.
Japan reports the retail trade expect sales for September, with a 2.5% gain from the year.
Investors will focus on Wednesday’s Fed meeting for fresh clues on the likely trajectory of monetary policy. Friday, the U.S. employment report for October will also be watched closely.
Thursday, the BoE meeting will also be in focus, together with the euro-zone growth and inflation data on Tuesday
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 0.18% at 94.72 in late trade.
Last week, the dollar reduced gains on Friday after rising to the highest level in more than three months on data showing that the U.S. economy grew more than expected in the third quarter.
The dollar eased following a report that US President Donald Trump is considering the nomination of Federal Reserve Governor Jerome Powell, to lead the U.S. Central Bank, a step that the sign of continuity for the monetary policy.
Powell is already less radical than the Stanford University economist John Taylor, to lead the other potential candidates, the Fed.
The dollar rose earlier after the Commerce Department reported that the U.S. economy grew at a 3% annual rate in the third quarter, better than forecasts for growth of 2.5%.
The stronger-than-expected reading underlined that the case for the Fed to raise interest rates at a faster pace in the coming months. Higher prices tend to make the dollar more attractive to yield-seeking investors.
The dollar already had a budget-draft 2018 received a boost on Thursday after house Republicans adopted, setting the stage for a tax overhaul. Some investors believe tax reform could increase to promote growth and prompt the Fed to interest rates, at a faster pace.
The euro remained on the back foot after the European Central Bank said on Thursday it is expanding its bond purchases in September 2018, while the reduction in the monthly bond purchases by half, to 30 billion euros per month starting in January.
The single currency was also the pressure is lower, after the Catalan Parliament said on Friday the independence from Madrid. The move, Spain’s Prime Minister sack the Catalan government asked, and call the elections next month.
The pound was pressured by the prospect of a quiet walk rate, a, which will not be followed by further rate increases, even before the upcoming Bank of England policy meeting.