The new week in the Forex market began with a renewed weakening of the US dollar. In the Asian session on Monday morning, the Japanese is re-testing the 90 Yen mark, EUR/USD is above 1.34, and the GBP/USD is again above 1.50.
This week is one week before Christmas and is the last full scale trading week before the holiday season. The markets might still make serious moves in high volume before becoming thin in the next week.
In Japan, the Tankan manufacturing index fell in its sharpest way since 1974, to -24. It’s also the lowest level of the Tankan index in 7 years.
The BOJ follows trends of production, employee hiring and investements in 10,000 different companies in Japan. In the fiscal quarter ending in March, the index is expected to show a further decline of another 12 points – to -36.
BOJ’s monetary committee is meeting on Thursday to determine the interest rate, but it has little space: the current rate is at 0.3, the lowest rate in the Western world.
Today’s major data is the TIC Long-Term Purchases in the USA, due at 14:00 GMT. Before that, the Empire State Manufacturing Index, at 13:30 GMT might also have a significant impact on USD traders.