Market News
US dollar close to multi-week lows versus euro and yen before US data - REUTERS
By Stefano Rebaudo and Gregor Hunter
Summary
- Euro supported by ECB's stance and strong economic data
- BoJ policy decision in focus as a rate hike is priced in
- US data could reinforce expectations for a Fed pause in January
- Yuan hits 15-month high against dollar
Dec 16 (Reuters) - The U.S. dollar hovered around multi-week lows against the euro and yen on Tuesday as investors awaited U.S. economic data later in the session that could affect expectations for the Federal Reserve's policy path.
Central bank decisions are in focus this week with the European Central Bank and Bank of England holding meetings on Thursday, while the Bank of Japan will announce its policy decision on Friday.
Economic data showing the euro zone economy remaining resilient, despite U.S. import tariffs, supported the ECB's higher-for-longer policy rate stance and bolstered the euro.
Meanwhile, the absence of pushback from the ECB on market bets for rate hikes in late 2026 or early 2027 may be read as tacit approval, leaving room for a hawkish surprise at this week's policy meeting.
The euro was up 0.1% to $1.1761 after hitting $1.1769 on Monday, its highest since September 24.
