(MENAFN– ecpulse)
The United States dollar kicked off week in slow motion, falling for a fifth day on Monday with investors unlikely to take aggressive positions ahead of major central banks events due later this week along with key economic data from the U.S. and euro-area.
Policy setting-meetings by the U.S. Federal Reserve and the Bank of Japan will likely keep traders cautious with much of Asia shut on Thursday for the Labor Day holiday, while Japan will be closed on Tuesday.
Investor sentiment towards the greenback has deteriorated in recent days. However, traders will be watching a full slate of U.S. economic data closely later this week.
The most recent Federal Reserve development, monthly non-farm payrolls report for April as well as preliminary estimate on first quarter economic growth will be expected this week.
Dollar traded sharply lower on Monday, extending losses into a fifth session to trade at 79.63 after opening at 79.64. The USDIX index so far hit a session high at 79.64 and low at 79.61.
In contrast, the safe-haven yen held firm as market participants kept an eye on tensions in Ukraine, where the United States and other members of the Group of Seven warned that they will impose new sanctions against Russia for destabilizing Ukraine as they meet later on Monday.
The market will continue to monitor the Ukraine-Russia situation to see if geopolitical tensions heighten further. Any further deterioration in the standoff between Russia and the Ukraine will further support yen.
Yen remained higher as eyes looking to policy board meeting next week in the Bank of Japan (BoJ). Governor Haruhiko Kuroda is expected to keep the door open for further easing, with no indication of immediate actions by the BoJ.
Yen rose sharply against the dollar, trading at ¥102.354, 0.16 percent high compared with a session opening at ¥102.270. The USDJPY pair so far hit a session high at ¥102.359.
The pair is expected to face support at ¥102.039 and resistance at ¥102.491.
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