Forex Today: Markets turn cautious to start the big central bank week

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Forex Today: Markets turn cautious to start the big central bank week
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Forex Today: Markets turn cautious to start the big central bank week – by eren_fxstreet Currencies Majors Macroeconomics Commodities CryptoCurrencies

Markets seem to have turned cautious at the beginning of the week with participants staying on the sidelines ahead of this week's eagerly-awaited central bank policy announcements and high-tier macroeconomic data releases. The US Dollar Index holds steady above 105.00 following last week's choppy action, US stock index futures trade flat in the European morning and the 10-year US Treasury bond yield stays calm above 3.5%.

Chinese officials announced earlier in the day that they will take the application used to track coronavirus cases offline later in the week. Additionally, Bloomberg reported that China may partially open borders with Hong Kong from next month, allowing people to travel freely heading into the Lunar New Year holidays. Nevertheless, the Shanghai Composite Index and Hong Kong's Hang Seng Index both remain on track to end the day in negative territory.

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