The US dollar was seen giving up some of the gains by Friday’s close, but the US dollar index was seen supported above the multi-year support level of 91.44. As a new trading week unfolds, all eyes are on the FOMC meeting due this Wednesday. Last week saw the British pound emerging on the top logging over 3% gains against the US dollar. This came as the Bank of England signaled that interest rates could rise in the coming months.
The Japanese yen was, of course, the weakest, as the currency declined 2.5% on the week by Friday’s close. This made GBPJPY the currency pair logging the biggest gains as a result.
The economic calendar today is relatively light. Scheduled for 0900 GMT, the Eurostat will be releasing the final inflation figures for August. Based on the flash inflation estimates, consumer prices in the eurozone are forecast to rise 1.5% on the headline and 1.2% on the core. While headline CPI is accelerating, core CPI continues to remain sluggish in comparison. Still, the inflation data is unlikely to dent the sentiment in the euro currency.
