The Japanese yen weakened against the US dollar on Tuesday, extending losses from last week's safe-haven gains. This shift came as traders adopted a risk-on mood and the euro softened ahead of major central bank meetings that will shape global interest rate expectations.
The dollar gained ground against the euro, yen, and pound as investors prepared for a series of pivotal central bank decisions. The Federal Reserve will announce its policy decision on Wednesday, followed by the European Central Bank on Thursday, and the Bank of Japan on Friday. These meetings are expected to influence the broader economic outlook.
In addition to central bank actions, traders are closely watching key corporate earnings reports. Microsoft has offered voluntary buyouts to 60,000 employees as part of an efficiency push driven by AI advancements. Meanwhile, UPS reported better-than-expected quarterly results and raised its full-year guidance for the second time this year.
Other notable developments include Nvidia's plan to invest $3 billion in Meta, deepening their AI partnership. The week's events are likely to have ripple effects across various asset classes, making it a critical period for global markets.