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Dollar remains steady as forex markets reactivate for a new week

forex market graphThe US dollar managed to avoid any plunges in value as the Asian session trading got underway on Monday.

However, it’s likely that any gains made by the dollar over the course of the day will be restrained for the same reason that the currency suffered last week – namely the assumption that the Federal Reserve central bank will fail to boost interest rate levels in 2019.

The dollar index, a tool which determines the value of the dollar in comparison to a basket of six other global currencies, managed to rise to 95.68 as the week’s trading kicked off.

Currencies which declined in value during the first few hours of the week’s trading, meanwhile, included the Australian dollar. This dropped by 0.2% against the US dollar.

The New Zealand dollar also suffered, albeit to a lesser extent. It dropped 0.1% compared to the US dollar.

The euro also dropped, reporting a 0.1% dip to $1.1460 compared to the US dollar as trading began.

With a new week in the foreign exchange trading markets now underway, a fresh look at the economic calendar indicates that there’s a lot to watch out for.

Today (Monday) will see an expected slowdown in the Japanese yen due to the Coming-of-Age Day bank holiday in Japan.

Euro traders could be busy, however, as industrial production s.a. figures for the month of November will be released at 10am GMT. These are likely to show a rise from 0.2% to -1% on a month on month basis.

Looking ahead to Tuesday, the vote in the British parliament on Brexit is likely to dominate the day and could well cause problems for both the pound and the euro. The exact timing of this vote is currently unclear.

In France, consumer price index data for December will be released at 7.45am GMT. Year on year, this is expected to reveal a rise from 1.9% to 2.2%.

American producer price index information for December is expected at 1.30pm GMT. Excluding food and energy, this is forecast to show no change from the previous position of 2.7% on a year on year basis.

At 3pm GMT, all eyes will be back on Europe as the European Central Bank (ECB) President Mario Draghi speaks.

At 6pm GMT, there’ll be further international central banker action as Esther L. George, who is the president and CEO of the US Federal Reserve Bank of Kansas City, will speak.

On Wednesday, the main event in Europe is likely to be the harmonised index of consumer prices for December in Germany. This is due out at 7am and is likely to remain at its previous position of 1.7%.

Core consumer price index information for December is expected out of Britain at 9.30am GMT. Year on year, this is expected to remain the same at 1.8%.

On Thursday, meanwhile, Europe-wide consumer price index data for December is expected at 10am GMT. Year on year, a continuation of the previous position is forecast here too, with this figure due to remain steady at 1.6%.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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