European market sentiment could be overshadowed by economic events and data in the U.S. this coming week, with more U.S. corporate earnings due (some of the largest companies in the world are scheduled to publish results this week including Apple, Microsoft, Amazon and Alphabet) as well as big data releases, including the latest gross domestic product data due Thursday and inflation data Friday.
In addition, the U.S. Federal Reserve is holding a monetary policy meeting on Tuesday and Wednesday, and market participants will be closely watching for clues on whether the central bank is nervous about the prospect of rising inflation. It has previously said it sees the pickup in prices as only temporary.
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The U.S. Dollar is trading lower against a basket of peers early Monday, hitting its lowest level since March 3 in the process.
Ahead of the opening, investors were betting on Fed policymakers to lean toward reducing bond purchases at its meeting on Tuesday and Wednesday, however, Reuters is reporting that there is speculation U.S. Federal Reserve Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting this week.
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At 06:21 GMT, June U.S. Dollar Index futures are trading 90.700, down 0.139 or -0.15%.
The dollar index is also being pressured by further gains in the Euro. The single-currency rose to near a two-month high against the greenback before data later on Monday forecast to show an improvement in German business sentiment, which would bolster hopes for a brighter economic outlook.
European Markets Climb, Following Global Sentiment Higher nbcconnecticut.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nbcconnecticut.com Daily Mail and Mail on Sunday newspapers.
The U.S. dollar resumed its slide on Monday and reached multi-year lows against the British pound and the Australian dollar as traders focused on the promise of coronavirus vaccinations and the outlooks for economic growth and inflation that could push bond yields higher.