Forex trading began this week with a small strengthening of the dollar. Not much economic data is due today, but there are a few notable indicators.
The dollar made gains against the British poound, the Euro and the Swiss Franc. It lost ground to the Japanese Yen.
The drop in USD/JPY could be explained In Japan, Core Machinery Orders that fell by only 1.7%, much better than early expectations. Also the Economy Watchers Sentiment exceeded expectations in Japan by hitting 17.1 points, more than 13.3 that was predicted. The Current Account disappointed in Japan, standing at 0.5 trillion Yen.
In Europe, German Trade Balance declined to 10.7 billion. This surplus was better than expected. EUR/USD is now at 1.2896. Later in Europe: Sentix Investor Confidence.
In Canada, Housing Starts are expected to fall to 165,000, less than last month. This data will be closely watched, especially after Friday’s big disappointment in employment data.
That’s it for today. Forex trading will be more interesting tomorrow. Here’s the outlook for the whole week in forex.Get the 5 most predictable currency pairs