Dollar Edges Up Ahead of Fed-Filled Data Day
The US dollar has ticked up slightly ahead of a packed day of economic data releases and speeches from top central bank officials. This includes the Federal Reserve's Governor Christopher Waller, who will speak at the same time as the release of the ISM manufacturing report.
Thursday's calendar is unusually crowded, with several key indicators, including jobless claims and S&P Global's manufacturing survey, being released alongside multiple speeches from Fed officials. The overlap between these events increases the likelihood that markets will experience rapid shifts in expectations, which can be reflected in changes to short-term bond yields and foreign exchange rates.
The early price action suggests this is already happening, with EUR/USD slipping to 1.1284 and USD/JPY climbing to 158.1851. European Central Bank President Christine Lagarde and policymaker Isabel Schnabel are also due to speak, which may reinforce or offset the signal sent by the US data.