Dollar edges higher ahead of crucial Fed meeting
Investing.com — The U.S. dollar edged higher in early European trade Monday, retaining last week’s strength at the start of a week that includes several central bank meetings, most importantly by the Federal Reserve, as well as a slew of important economic data releases.
At 03:20 ET (08:40 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 106.445. The index gained around 1% last week.
The U.S. dollar has been on the front foot of late, helped by signs of U.S. economic strength, even after a prolonged period of interest rate hikes by the Federal Reserve.
U.S. consumer spending surged in September, while the U.S. economy grew at its fastest pace in nearly two years in the third quarter.
Fed policymakers meet this week, with the central bank expected to keep rates on hold when the decision is announced on Wednesday,
However, traders are apprehensive that these strong numbers will mean that they signal higher-for-longer rates as they continue to move fret about overheated inflation.
USD/JPY fell 0.1% to 149.50, with the yen getting a slight reprieve after the pair rose to a one-year high of 150.78 last week.
The focus was squarely on the conclusion of a BOJ meeting on Tuesday, where the central bank is expected to potentially announce further changes to its yield curve control policy, as it grapples with high inflation and a severely weakened yen.
Recent data showed a growing resurgence in Japanese consumer inflation, which could push the BOJ into indicating plans to scale back its ultra-loose policy.
EUR/USD fell 0.1% to 1.0554, with the single currency retreating after data showed inflation falling in the eurozone, just a few days after the European
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