Dollar Steady as Traders Prepare for Central Bank News
Dollar remains flat before Fed meeting
Currency awaits economic data from central banks
NEW YORK, July 29 (Reuters) - The dollar held steady on Monday as traders braced for an avalanche of economic news from central banks this week, including the highly anticipated Federal Reserve meeting.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was little changed at 100.91, clinging close to its recent range. Investors are cautiously optimistic that the Fed will signal a possible shift towards a more hawkish stance, which could boost the dollar.
"The dollar has been trading in a narrow range for the past few weeks as traders await direction from central banks," said Karl Schamotta, chief market strategist at Cambridge Global Payments. "The Fed meeting will be the main event this week, and how the central bank assesses the economy will have a significant impact on the dollar's trajectory."
Besides the Fed, the European Central Bank and the Bank of England are also scheduled to hold policy meetings. Traders will be closely watching these meetings for clues on the central banks' monetary policy plans and their assessment of the economic outlook.
"The dollar could see some volatility this week as traders react to central bank news," Schamotta added. "However, the overall trend for the dollar will likely depend on how the broader market sentiments evolve."
Komentar