Breaking News: U.S. Dollar Holds Steady Ahead of Powell Speech and Key Employment Report
The U.S. dollar maintained its position on Monday as investors eagerly awaited a speech by Federal Reserve Chair Jerome Powell, with all eyes on Friday's crucial employment report.
As of 04:25 ET (08:25 GMT), the Dollar Index, which measures the dollar against a basket of other currencies, was slightly down at 100.035. Last week, the dollar saw its fourth consecutive weekly decline and ninth in the last 10 weeks.
Focus on Payrolls Data
Last week, the U.S. dollar saw a decline after signals from the Federal Reserve indicated a decrease in price pressures, following the start of the central bank's rate-cutting cycle.
Federal Reserve Chair Jerome Powell was scheduled to address the National Association for Business Economics on Monday and is expected to provide further insights into the Fed's recent decision to cut its benchmark interest rate. A survey released by the group highlighted concerns about a potential "monetary policy mistake" posing the greatest downside risk to the U.S. economy in the next year.
Market analysts are closely watching the upcoming October employment report, set to be released on Friday. Economists anticipate an addition of 144,000 jobs to the U.S. economy. The focus on employment by the Federal Reserve could influence market reactions to the report.
Eurozone Inflation in Focus
In Europe, the euro slightly increased to 1.1172, ahead of the release of flash September inflation data on Tuesday. The European Central Bank is closely monitoring inflation figures as they consider potential rate cuts in October.
German inflation data will be released ahead of the eurozone report, following lower-than-expected inflation numbers in France and Spain last week, which raised expectations for an ECB rate cut.
Market analysts predict that weaker eurozone inflation combined with lower U.S. payrolls figures could lead to a decline in the euro against the dollar, as markets anticipate further ECB rate cuts in October.
Meanwhile, the British pound increased to 1.3399, nearing last week's high of 1.3430. Data released on Monday showed that the UK economy grew at a slower pace than previously estimated in the second quarter.
Yen Retreats After Recent Gains
The Japanese yen saw a slight decline, rising to 142.44, as the country's incoming prime minister hinted at maintaining accommodative monetary policy. Last week, the yen surged when a critic of easy policy won the leadership of Japan's ruling party.
In China, the yuan stabilized at 7.0120 after a series of stimulus measures by Beijing boosted the currency last week, breaking below the key 7-per-dollar mark.
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