Central Banks Dominate Week Ahead: Fed, BoE, and BoJ in Focus
The upcoming week will be crucial for major currencies as several central banks hold key meetings. The US Dollar Index (DXY) remains near the 99.00 zone, having closed little changed on Friday and holding its ground after a brief wobble on Thursday's US inflation release.
On Monday, Canada releases August inflation data, followed by the UK labor market report and Germany's ZEW sentiment survey on Tuesday. The pivotal day will be Wednesday, when the UK publishes CPI and the US Retail Sales print is released before the Federal Reserve (Fed) decision, which is expected to raise interest rates for the first time since 2006.
The Bank of England (BoE) meeting on Thursday is also crucial, while the Bank of Japan (BoJ) will close the week on Friday. The European Central Bank (ECB) is well-represented on the speaking circuit, with President Christine Lagarde due several times and colleagues scheduled to speak.
The US Dollar remains firm in tone but has yet to break through a decisive breakout. A hawkish Fed decision would put pressure on EUR/USD, while the Greenback's repeated failure to hold gains has kept a floor under the Euro.