Dollar secures top spot as Monday forex markets trading begins

The US dollar managed to surge ahead as a new week of forex markets trading began on Monday. The US dollar managed to surge ahead as a new week of forex markets trading began on Monday.

The currency managed to dominate many of its major rivals, including the British pound – which dropped by 0.05% to $1.2804.

This came despite the UK government managing to secure a Brexit deal with a number of other European countries.

It is expected, however, that the most difficult hurdle – a vote in the British parliament to approve or reject the deal – is yet to come. This suggests that the pound could be in for a rocky ride when the time of the vote in mid-December rolls around.

The dollar performed well against the euro too, which dropped somewhat to $1.1335.

The US dollar also managed to beat rivals outside of the ongoing Brexit spat. It led the way over the Japanese yen, for example, and advanced 0.25% in the USD/JPY pair to 113.22.

This is down in part to the Bank of Japan’s apparent decision to keep monetary policy significantly loose for the foreseeable future. When placed in contrast with the tightening ambitions of the US Federal Reserve, the dollar’s rise appears inevitable.

Despite no Brexit landmarks on the horizon, the week ahead looks set to be a busy one for foreign exchange traders.

Today (Monday) sees a speech from Bank of England Governor Mark Carney which is due at 6.30pm GMT.

Later in the day, there will be a series of significant data releases from New Zealand, including trade balance information and import/export levels. These are due out at 10.45pm GMT.

Tuesday morning will kick off with the German import price index covering October. This is expected to rise substantially: month on month it is expected to go from 0.4% to 0.6%, while year on year it is expected to show a rise from 4.4% to 4.6%.

Two prominent officers in the US central banking system will speak later on Tuesday. Richard H. Clarida, Vice Chairman of the Board of Governors of the Federal Reserve, will speak at 1.30pm GMT. While, Raphael W. Bostic, President and CEO of the Federal Reserve Bank of Atlanta, will speak at 7.30pm GMT.

On Wednesday, the Bank of England’s stress test results will be due out as well as its financial stability report.

The main event of the day, however, will be significant US data releases due out at 1.30pm GMT. Preliminary annualised gross domestic production information for the third quarter of the year will be out at 1.30pm GMT, with analysts expecting that this will simply remain static at 3.5%.

The preliminary real personal consumption expenditures average for the third quarter of the year will be out at 1.30pm GMT. This is expected to show no change when measured on a quarter on quarter basis and is due to remain at 1.6%.

Wednesday also sees Japanese trade information out at the very end of the day, around 11.50pm GMT. Year on year retail trade figures for October, for example, are expected to show a rise from 2.2% to 2.6%.

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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