Dollar extends gains with Fed speakers on tap

The EURUSD currency pair started the week in the same weak tone as at the end of the previous one, extending its reversal from long-term highs above 1.1900 set on Wednesday to trade near 1.1740 on Monday.

The US Dollar has kept a moderate bullish tone in a calm Asian session with only a slew of Federal Reserve speakers on schedule, later Monday, to provide some fundamental guidance.

More than ten Fed policymakers are expected to deliver press conferences this week and provide their views about the central bank’s monetary policy plan.

Investors will look with particular interest at the new member of the Fed’s Board of Governors Stephen Miran, due to speak later on Monday. He is expected to defend his independence as policymaker and explain his reasons to opt for a jumbo interest rate cut last week, dissenting from the rest of the committee.

On Tuesday, Fed Chairman Jerome Powell will give a speech on the Economic Outlook at the Providence Chamber of Commerce, where he might delve into the need for a cautious approach to monetary policy. Last week, Powell’s stance offered some contrast to the market consensus, which prices in nearly one rate cut in each of the two monetary policy meetings remaining this year.

In Europe, ECB Chief Economist Philip Lane and German Bundesbank President Joachim might give some more clues about the European Central Bank’s monetary policy. In between, the Eurozone’s Consumer Confidence will provide the main data point.

Investors’ focus, however, will remain on Tuesday’s preliminary Manufacturing and Services Purchasing Managers Indexes (PMIs) for more insight into the region’s economic outlook.