US Dollar Hold Steady: All Eyes on Fed
Monday's trading session witnessed the dollar maintaining stability, reflecting the subdued market activity due to the closure of major Asian markets for the holiday.
The spotlight remained on U.S. inflation data, eagerly awaited by investors seeking insights into the potential future actions of the Federal Reserve regarding interest rates.
In contrast, the euro experienced a slight decline to $1.0778 following a brief ascent earlier in the day, while the pound held its ground at $1.2632.
Concurrently, the Japanese yen exhibited a modest strengthening, reaching 149.04 per dollar as market participants awaited the release of U.S. CPI figures for January.
Despite robust job data earlier this month, market sentiment leans towards a potential rate cut by the Fed in May rather than March, given the prevailing economic conditions.
Moreover, attention remains focused on the behavior of the Japanese yen, particularly as it nears the psychologically significant 150 level, prompting authorities to closely monitor FX movements.