Your current location is:{Current column} >>Text
Currencies in limbo awaiting packed week of central banks By Reuters
{Current column}5People have watched
IntroductionBy Stella QiuSYDNEY (Reuters) - Currencies were in limbo on Monday as holidays in most of Asia made ...
By Stella Qiu
SYDNEY (Reuters) - Currencies were in limbo on Baiyihui Global official websiteMonday as holidays in most of Asia made for thin trading, while traders braced for a packed week of central bank meetings that would offer the latest guidance on future rate hikes across continents.
Activity in the foreign exchange markets was subdued due to the Labour Day holidays in Singapore, Hong Kong and mainland China. Japan, Australia, and New Zealand are the only centres open in Asia.
The Japanese yen slid 0.2% to 136.67 per dollar on Monday, extending its post-BOJ slump. The Bank of Japan (BOJ) on Friday stood pat on its monetary policy, sending the yen 1.7% lower in the biggest daily drop since early February.
The Australian dollar was also on the defensive on Monday, easing 0.1% to $0.6610. The currency fell 1.1% last week to a seven-week low of $0.6573, but has found strong support at the March trough of $0.6564.
The New Zealand dollar lost 0.3% to $0.6172, giving back some of the impressive rally last week.
The jumped 2.3% on the yen on Friday as the prospects of higher rates, with the Reserve Bank of New Zealand set to raise rates further this month, attracting some buyers.
Weighing on risk sentiment on Monday was the unexpected contraction in China's manufacturing activity in April and news on the weekend that U.S. major banks including JPMorgan Chase & Co (NYSE:) were vying to bid for (NYSE:).
In the week ahead, the Reserve Bank of Australia is widely expected to extend a rate pause on Tuesday, the Federal Reserve is projected to raise rates by another 25 basis points on Wednesday and the European Central Bank could surprise with an outsized half-point increase on Thursday.
Goldman Sachs (NYSE:) expects the Fed to signal a pause in June, after it delivers a quarter-point hike on Wednesday.
"The focus will be on revisions to the forward guidance in its statement," analysts at Goldman said in a note to clients.
"Beyond May, we expect the FOMC to hold rates steady for the rest of the year, though several paths are possible, with much depending on how severely the bank stress affects the economy."
Catching up with their overseas counterparts, Australia's government bonds rallied on Monday.
Three-year yields slid as far as 12 basis points but have since trimmed losses and were last at 3.001%, while 10-years were last down 5 bps at 3.335%.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
Gold pressured by debt ceiling uncertainty, copper slumps amid China woes By
{Current column}-- Gold prices traded below key levels on Wednesday as uncertainty over the U.S. debt ceiling sparke ...
Read moreRouble sell
{Current column}2/2© Reuters. Chinese yuan banknote is displayed on U.S. Dollar banknotes in this illustration taken ...
Read moreA Recession Unlike Any Other
{Current column}The U.S. economy is already deteriorating due to the humongous fiscal and monetary cliffs. These cli ...
Read more
Popular Articles
- Oil dips on recession fears, slower demand By Reuters
- Oil Dips on Week; Russia Holdout Over Iran Limits Drop By
- Russia Steps Up Attacks, BoC Decides On Rates, Fed’s Powell Testifies
- Amazon board approves 20
- China's Zeekr launches electric SUV, targets Europe By Reuters
- Oil Dips on Week; Russia Holdout Over Iran Limits Drop By
Latest articles
-
Philippines places buoys in parts of S.China Sea to assert sovereignty By Reuters
-
Best Performing Stocks On The World's First Marijuana ETF
-
Upcoming Macro Market Highlights: ECB Meeting, U.S. And China CPIs
-
Gold May Have Much Higher To Climb
-
1 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, Intel
-
Natural Gas Tumbles As Europe Races To Fix Crisis, U.S. Spring Beckons