Forex
Dollar Slips Amid Shift in US and Japan Interest Rate Outlook
The US consumer may have finally taken a step back, and Friday's retail sales figures showed the first decline in nine months. This has put the spotlight on earnings from Walmart and Home Depot this week, as well as the AI spending boom.
In Asia, the dollar was the main mover, slipping broadly as traders reassess their outlook. Rate hikes are priced in for Europe and Japan next month, while the retail figures have shifted the market's US outlook further in favor of a hold.
The Aussie and kiwi notched two-month highs, while sterling and the euro were close to multi-month highs. The yen rose slightly as traders increasingly bet on policymakers picking up the pace of rate hikes in Japan.