Stateside, questions about the future of Federal Reserve Chair Janet Yellen led to some market moves on Friday, including a hiccup in stock prices and a rise in Treasury yields.
That followed a report that President Donald Trump met with former Fed governor and former Morgan Stanley executive Kevin Warsh, who was previously rumored to be a contender for the central bank’s top post.
“Traders will continue to be vigilant as they search the news tickers for headline clues as to who the next Fed Chair will be, and how the tax reform process is going,” said Stephen Innes, head of trading in Asia Pacific at OANDA, in a morning note.
In the foreign exchange market, the dollar index, which measures the greenback against a basket of currencies, traded at 93.156. Meanwhile, the Japanese yen was at 112.59 per dollar, and the Australian dollar was at $0.7841, both trading in line with Friday’s levels.
Innes added that forex markets will “continue to be sensitive to headline risk” as the start of the fourth quarter brings “a deluge of central bank speakers along with the main sentiment and inflation prints.”
He also said that traders are likely to watch developments in Spain, where regional officials in Catalonia said a majority of the residents there voted in favor of breaking away in a banned referendum.
The euro traded at $1.1799 Monday morning.