U.S Dollar Modestly Lower on Monday Ahead of Economic Data
The U.S dollar was slightly lower against its major trading partners early Monday ahead of a busy week of top-tier economic data and Federal Reserve speakers.
On Monday, though, the only data release is the New York Fed’s Empire State manufacturing index, which is expected to post a modest increase after sharp fluctuations in the previous four months.
Rising inflation has been a concern for consumers over the last few months and will be the focus of the market’s attention on speeches from Fed officials this week.
A quick summary of foreign exchange action heading into Monday indicates that USD-JPY declined to 113.8227 from 113.9460 at the Friday US close. The pair hit a peak of 114.2589 last week after the upside surprise in the US consumer price index report but has given up part of that gain.
It still sits above the 113.4292 level a week ago. Japan’s gross domestic product report for Q3 was below expectations when it was released earlier Monday, showing a larger decline than expected and giving fuel to those who want further fiscal stimulus.
USD-CAD ticked down to 1.2523 from 1.2552 at the Friday US close, below the post-CPI peak of 1.2587 last week, but remaining above the 1.2441 level a week ago.
The Canadian data calendar includes data on housing Monday and Tuesday, with the CPI release Wednesday the highlight of the week, while the main US releases are on Tuesday, so the early-week statistics will set the tone for the pair.
GBP-USD ticked up to 1.3436 from 1.3415 at the Friday US close, above the 1.3367 low last week, but has still not recovered its entire loss from the US CPI surprise. The pair was at 1.3512 a week ago. The Bank of England remains on track for rate hikes sooner rather than later.
EUR-USD recovered only modestly to 1.1448 from 1.1443 at the Friday US close and the 1.1442 low last week, well below the 1.1572 level a week ago.
As with the major currencies, the shift lower for EUR-USD came after the strong US CPI report. The release of EU GDP on Tuesday and EU inflation readings on Wednesday, coming on the same days as key US data, will be the highlights for the pair. # U.S Dollar Modestly Lower on Monday Ahead of Economic Data
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