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Dollar Advances as Markets Focus on U.S. Data, Yen Weakens Above 157

Traders are keying off reports that could recalibrate expectations for Federal Reserve easing this year.

Overview

  • Currency moves were measured as traders looked past the U.S. raid in Venezuela that captured Nicolás Maduro, with the dollar near $1.1700 per euro at a 3½‑week high.
  • USD/JPY climbed back above 157.00 as wide U.S.–Japan yield differentials and doubts about the pace of Bank of Japan normalisation kept pressure on the yen.
  • Futures-based pricing compiled by LSEG points to about two U.S. rate cuts in 2026 following a run of resilient economic data.
  • A heavy U.S. calendar from ISM surveys early in the week to Friday's non-farm payrolls is in focus for signals on the Fed policy path.
  • Investors are also watching President Trump's forthcoming choice to succeed Fed Chair Jerome Powell, with an announcement pledged this month.