Dollar Strengthens Ahead of Crucial Economic Indicators, Bank of Canada Meeting

The dollar gained ground ahead of pivotal U.S. economic indicators, as investors anticipate key data releases and the Bank of Canada’s policy meeting, which could initiate a cycle of rate cuts. Eyes are on U.S. services data, with further job figures expected later in the week. Lingering concerns over a softening U.S. economy have fueled speculation for earlier Federal Reserve interest rate adjustments. Meanwhile, the Bank of Canada’s meeting coincides with the European Central Bank gathering, amidst slowing annual inflation prompting expectations for a Canadian rate cut. Market sentiment suggests an 80% probability of a rate cut by the Bank of Canada, influencing broader G10 currencies like New Zealand.