 Dollar is broadly stronger today in what is otherwise a quiet trading session. With US markets closed for holiday, overall activity has been subdued. However, Dollar bulls seem to be taking advantage of the thinner liquidity to push the greenback higher. The anticipation of further interest rate cuts from ECB this week, and more to come, is providing additional support for Dollar. Additionally, the lack of clarity surrounding China’s fiscal stimulus continues to weigh on the Aussie and Kiwi, keeping both on the back foot. In addition to ECB rate cut, attention is also on the UK, where a series of key economic releases are due throughout the week. Tomorrow's employment and wage growth data kick off a lineup that also includes Wednesday’s CPI report and Friday's retail sales figures. These indicators will be closely watched by market participants as they assess the potential for further rate cuts from the BoE. The BoE has been grappling with a split within its Monetary Policy Committee, with some members extended easing to counter slowing economy, while others advocate a more cautious approach. |
