The US dollar maintained a weak trading performance at the beginning of the week while the Euro currency rose positively driven by reports of approval by the German parliament for a massive spending plan aimed at economic recovery.
The Euro managed to reach a fresh 5-week high against the US dollar, surpassing last week’s trading level.
The US dollar is still shrouded in concerns about economic growth due to the ongoing tariff war issue with warnings to retaliate by raising tariffs on each other.
In addition, the US retail sales data published at the beginning of the week also failed to meet the target in February, reflecting still weak spending despite the figures increasing from the previous month’s reading.
However, price movements are still seen as cautious as investors await the results of the policy meetings of major central banks.
Today (Wednesday) will begin with the results of the Bank of Japan (BOJ) policy meeting in the Asian session. Interest rates are expected to remain at 0.50%.
Next, the main focus this week will be the latest FOMC meeting early Thursday morning.
Interest rates are expected to be maintained at 4.50% by the Federal Reserve (Fed), but the follow-up speech by Fed Chairman Jerome Powell is expected to have a major impact on the market.
Later on the same day, the Swiss National Bank (SNB) and the Bank of England (BOE) will follow the results of their policy meetings.
Investors also remain vigilant to monitor the development of current issues that affect market sentiment, especially tariffs and war.
While President Donald Trump promised to end the war throughout his election campaign, he was seen as unable to control Netanyahu's actions, which have violated the ceasefire agreement and continued attacks on Gaza.
