Dollar firms as traders await Fed, ECB and BoJ decisions this week
The dollar edged up against the euro, yen and pound as investors positioned before this week's Fed, ECB and Bank of Japan meetings, all seen holding rates.
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what happened
Reuters reports that the dollar rose slightly against major currencies on Tuesday, as traders positioned themselves ahead of a run of central bank meetings that will provide new signals on economic growth and interest rate policy. The greenback has steadied after a sell-off in high-flying AI stocks last week weighed on it.
The euro fell 0.33% to $1.1136 and is on course to be the weakest major currency in October, down 1.70%, pressured by high energy costs, volatility in French government bonds and concerns about France's fiscal position.
why it matters
The Fed, ECB and Bank of Japan are all expected to keep rates unchanged, so signals about future policy will matter most. Bank of America analysts said a dovish hold could weigh on the dollar more sharply, while a hawkish tone would be broadly neutral. The Reserve Bank of New Zealand and Bank of Canada also decide on Wednesday, with both expected to raise rates. Japan's finance minister said Tokyo stands ready to act in currency markets, which limits how far the yen can slide.
market impact
FX: dollar supported ahead of central bank meetings, euro under pressure from energy costs and French risks
- Dollar index pressure up — traders reposition ahead of Fed, ECB and BoJ decisions as AI stock sentiment steadies
- EUR/USD pressure down — high energy costs and French fiscal and bond concerns weigh on the euro
tags
instruments
sources
- Dollar rises as markets eye central bank meetings — Reuters, 27 October 2026 at 19:46 UTC
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