Market News

By Chibuike Oguh and Amanda Cooper

Summary

• Trio of central banks to announce rate decisions
• US non-farm payrolls and inflation data due
• Yen rises while pound loses ground
• US dollar index edges lower, bitcoin continues losing streak

NEW YORK/LONDON, Dec 15 (Reuters) - The U.S. dollar edged lower against rivals including the yen and Swiss franc on Monday in a week packed with central bank decisions and U.S. data that could shed light on the Federal Reserve's near-term policy outlook.
The dollar was last down 0.31% against the yen, trading at 155.345 to the dollar.

The Bank of Japan is widely expected to raise interest rates on Friday, giving the yen an advantage over a dollar that could lose support if expected U.S. rate cuts emerge early next year.

"Our economists shifted to expecting a December hike from the BoJ in their base case," Goldman Sachs analysts led by Alexandra Kanter wrote in an investor note.
"The guidance will be key for near-term direction, and a recent report suggests that there may be less emphasis placed on the bank’s estimate of the neutral rate."

The BoJ is likely to maintain a pledge to keep raising interest rates but emphasise that the pace of increases will depend on how the economy reacts to each increase, sources told Reuters.

The Bank of England and European Central Bank are among central banks making monetary policy decisions this week.