Asian session review: the US dollar fell slightly against major currencies

During today's Asian trading, the US dollar was trading near multi-week lows against major currencies as traders ponder the next steps of major central banks ahead of the US Federal Reserve meeting next week.

The euro fell modestly yesterday after European Central Bank President Christine Lagarde dashed expectations that policymakers would start considering reducing bond purchases as the economic outlook improves.

Fed Chairman Jerome Powell is likely to repeat Lagarde's message that it is premature to talk about a gradual rate cut, which will put downward pressure on treasury yields and limit the dollar's gains against most currencies.

The Fed's next meeting ends on April 28, and while no major policy changes are expected, investors are paying close attention to any comments about the possibility of reducing monetary easing in the future.

Analysts say rising coronavirus vaccination rates and an improving economic outlook are reasons for optimism, but investors are lowering expectations of a reversal of monetary easing after Lagarde said talk of ending emergency bond purchases is premature.

The pound rose moderately against the US dollar after the release of the UK data. According to the report from Office for National Statistics, retail sales volumes continued to recover in March 2021, with an increase of 5.4% when compared with the previous month reflecting the effect of the easing of coronavirus (COVID-19) restrictions on consumer spending. Economists had expected a 1.5% increase. Sales were 1.6% higher than February 2020 before the impact of the coronavirus pandemic.