Dollar rises as traders focus on upcoming US data rather than Venezuela.

TOKYO

The dollar kicked off the first full week of 2026 strong, reaching a 3.5-week peak against the euro and hitting two-week highs against the yen, Swiss franc, and Canadian dollar.

Currency traders seemed to overlook the recent U.S. military action in Venezuela and the detention of President Nicolas Maduro. Instead, their attention was directed towards upcoming U.S. macroeconomic data that could influence the Federal Reserve’s policy decisions.

The dollar increased by 0.3%, now sitting at $1.1682 per euro, after previously climbing to $1.1672, marking its highest level since December 10.

Additionally, it rose to 157.295 yen, 0.7951 Swiss franc, and 1.37771 Canadian dollar, all of which are the highest values since December 22.

According to Kyle Rodda, a senior financial markets analyst at Capital.com, it appears the currency market reflects more on what U.S. statistics suggest for the Fed’s direction rather than the risks from Venezuela. He mentioned that traders are contemplating a slower pace of rate cuts this year considering the recent strength in U.S. economic data.

This week’s data roll-out begins with Monday’s ISM manufacturing statistics and peaks with Friday’s monthly non-farm payrolls report.

Currently, traders anticipate two rate cuts in the U.S. this year, based on calculations from LSEG’s futures market.

Investors are also paying attention to U.S. President Donald Trump’s upcoming choice for the next Fed chairman, as Jerome Powell’s term concludes in May. Trump stated that he would announce his selection this month, highlighting that the next chair should favor lower interest rates.

Meanwhile, Bank of Japan Governor Kazuo Ueda mentioned on Monday that the central bank would keep increasing interest rates if the economic and price conditions align as anticipated. This has been his consistent stance over recent months, especially after the rate hike in December that marked the highest level in 30 years.