IMF to revise growth forecasts again
The dollar pulled away from a one-month high against a basket of currencies in overnight trade last night as market participants await key Chinese factory survey and U.S. employment data later this week in the hope that this may shed some light on when the Federal Reserve will make their move on U.S. interest rates. Sustained improvement in employment conditions in the United States, as well as signs of steadying in the recently waning Chinese economy could help convince the Fed to raise interest rates for the first time for over 8 years.
The dollar index last stood slightly lower, moving away from Friday’s high, it’s highest since Aug. 19. The US Dollar lost ground versus the yen and euro, the single currency gained about 0.1 percent versus the greenback in overnight trade.
This week the IMF is expected to downgrade its global economic forecasts when it publishes updated figures, which could quash risk appetite for market participants. Also in the United States, the shock resignation of House Speaker John Boehner and his comments on Sunday that Congress will avoid a government closure this week theoretically remove a source of investor anxiety.
In Spain,the Iberian peninsula Catalonia will hold crucial elections this Sunday between independent parties demanding independence from Spain. Other than Wednesday’s Euro CPI and Unemployment and Friday’s PPI, there’s the ECB’s Monetary Policy Meeting Accounts. A quiet week on Euro data does not guarantee abatement in volatility.