Markets will be busy this week with Britain's budget, a European Central Bank meeting, U.S. jobs data, and big political events in China and the U.S. The dollar fell versus the euro on Monday.
Bitcoin, which soared to a more than two-year high above $65,000 following a quiet weekend, was especially watched due to large flows into cryptocurrency exchange-traded funds, particularly in the US.
The dollar index, which tracks the currency against six major counterparts, was steady at $103.83, while the euro rose 0.12% to $1.0853. The Japanese yen hovered at $150 per dollar. Last at 150.485 yen, the dollar rose 0.24%.
Most major currency pairs stayed close to previous trading ranges as traders avoided significant directional wagers ahead of this week's market-moving events.
“FX markets are – once again – operating with an abundance of caution ahead of lots of new info this week,” said Monex USA Washington FX trader Helen Given. "No one wants to get stung on any surprise, so I'd be surprised if flows don't remain muted in the front half of this week," said.
On Wednesday and Thursday, Federal Reserve Chair Jerome Powell speaks before legislators, and on Friday, U.S. payrolls data is expected to show a still-solid 200,000 job gain following January's 353,000 surge.
"Payrolls could be the bigger mover as Powell is likely comfortable with current market pricing for Fed cuts, while if we get another strong payrolls after the last blowout report that could affect market expectations (for Fed policy)," said Lee Hardman, a MUFG currency strategist.
Early in 2024, markets priced in large interest rate decreases, but traders have since decreased them.
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