LONDON—The dollar edged lower on Monday as traders stayed on guard ahead of policy decisions this week from several central banks, including the Federal Reserve, who are expected to keep interest rates on hold for the first time since January 2022.
Monetary policy meetings of the Fed, the European Central Bank (ECB) and the Bank of Japan (BOJ) will set the tone for the week as markets seek clues from policymakers on the future path of interest rates.
U.S. May inflation data is also out on Tuesday as the Fed kicks off its two-day meeting.
“FX markets should be subdued today because of the important meetings from the Fed and ECB on Wednesday and Thursday,” said Niels Christensen, chief analyst at Nordea….