Currency Traders Keep Powder Dry Ahead of Looming Event Risks
So far, so good. A potentially-dangerous week in foreign exchange markets has started quietly, with most major currency pairs remaining tightly rangebound as traders brace for a raft of central bank decisions, data releases, and earnings reports over the coming days. The dollar is stable, Treasury yields are flatlining, and equity futures are setting up for a modestly stronger open. The Canadian dollar and other risk proxies are holding near Friday’s closing levels after the US Treasury Department’s latest borrowing estimate met market expectations, leaving bond yields flat during yesterday’s session, and reducing anxiety ahead of tomorrow’s quarterly refunding announcement....