European session review: USD slips after jumping to one year high last week
04.10.2021, 12:07

European session review: USD slips after jumping to one year high last week

TimeCountryEventPeriodPrevious valueForecastActual
06:30SwitzerlandRetail Sales (MoM)August-2.6% 1.1%
06:30SwitzerlandRetail Sales Y/YAugust-2.3% 0.5%
06:30SwitzerlandConsumer Price Index (MoM) September0.2%0.2%0.0%
06:30SwitzerlandConsumer Price Index (YoY)September0.9%1.1%0.9%
12:00EurozoneEurogroup Meetings    
12:00OPECOPEC-JMMC Meetings    


USD fell against most of its major counterparts in the European session on Monday, correcting downwardly after climbing to its highest levels in a year last week.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, declined 0.23% to 93.82.

Investors now look for a crucial September jobs report, which will be released on Friday and may strengthen the case for the Federal Reserve to begin winding back its ultra-accommodative monetary policy. The last week’s releases showed a bigger-than-forecast gain in consumer spending, a surprise acceleration in manufacturing activity, and elevated core PCE inflation, supporting the Fed's move towards tightening.

The  Fed’s “dot plot”, which was released after the conclusion of the central bank's September gathering a week ago, showed that half of the FOMC members now see the first interest rate hike in 2022. At the same time, the U.S. central bank’s chairman Jerome Powell signaled that the Fed could begin scaling back its bond purchases in November and end the process by mid-2022.

In addition, markets continue to monitor developments around the Chinese troubled property developer Evergrande and the U.S. debt ceiling.

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