Policy meetings of the Fed, the European Central Bank and the Bank of Japan will set the tone for the week, as markets seek clues from policymakers on the future path of interest rates.
The U.S. dollar index clocked a loss of nearly 0.5% last week, its worst weekly drop since mid-April, and was last marginally higher at 103.58.
"Outside of the decisions that the central banks make at this meeting, what will be of particular interest is their forward guidance," economists at ANZ wrote in a note.
"Central banks have raised rates aggressively over the past 12-15 months and given the lagged effects with which monetary policy affects demand, are central banks teeing up for a pause, following the RBNZ's example?"
"We change our BOJ call to no YCC revision at this week's meeting," said Societe Generale's Jin Kenzaki, referring to the central bank's controversial yield curve control policy.
Persons:
Alvin Tan, Jin Kenzaki
Organizations:
European Central Bank, Bank of Japan, Asia FX, RBC Capital Markets, Money, U.S, Reuters, ECB, ANZ, Reserve Bank of New
Locations:
Asia, Australia, Reserve Bank of New Zealand