Market News
Dollar faces crunch week for US rates, yen holds gains - REUTERS
- Dollar braces for payrolls, host of Fed speakers
- Yen bulls bet on Dec rate hike from BOJ
- Euro grapples with French politics, budget risk
SYDNEY, Dec 2 (Reuters) - The dollar started in a cautious mood on Monday in what is shaping up to be a critical week for the prospect of U.S. rate cuts, while the yen's recent rebound was underpinned by wagers on rising rates at home.
Over the weekend, Bank of Japan Governor Kazuo Ueda said the next interest rate hikes are "nearing in the sense that economic data are on track," following figures showing Tokyo inflation picked up in October.
Markets now imply a 56% chance the BOJ will hike by a quarter point to 0.5% at its policy meeting on Dec. 18-19.
Barclays economist Christian Keller said data on labour earnings this week should show a further pick up and all the signs were pointing to another strong "shunto" wage round in February.
