The US Dollar was broadly lower with limited exceptions during Monday trade in London after posting its largest single week’s rise in 2017. Investors decided to book their profits ahead of this week’s Federal Reserve Bank rate decision. FX players are also anxiously keeping an eye on economic data to help gauge the Fed’s timing on a possible rate hike. Sentiment has recently shifted as a result of unexpectedly upbeat economic news which has suggested that the Fed might take a more hawkish bias. One currency strategist in France expects that an increase in core personal expenditures data which comes out today could help cement a more imminent rate hike.
As reported at 11:51 am (BST) in London, the AUD/USD was trading at $0.768, a gain of 0.10%; the pair earlier hit a peak of $0.76882 while the session low stands at $0.76620. The NZD/USD is down 0.28% and trading at $0.6856, off the session high of $0.68876 while the low is at $0.68310. The GBP/USD was up 0.28% and trading at $1.3161 while the USD/JPY was trading at 113.611 Yen, down 0.03%.
NFP Data in Focus
While markets will first eye Wednesday’s Fed statement for any change to current monetary policy, FX traders will look ahead to Friday’s labor data from the US for the next possible shift in sentiment. Currently, analysts are forecasting 300,000 new jobs will have been posted in the private sector for the month of October. The Fed’s dual mandate encompasses full employment, and an upbeat report could be seen as positive for additional rate hikes in 2018.