The US dollar managed to avoid a decline in the forex markets on Monday after the rounds of jobs data on Friday was positive.
According to nonfarm payrolls information, there was a strong rise of 196,000 jobs last month – a piece of news which led to a rise of 0.1% for the US dollar index, which tracks the currency compared to six others from around the world.
Elsewhere, the British pound struggled to recover from losses experienced on Friday. It went down to a weekly low point of $1.2987 in the GBP/USD pair on Friday of last week amid concerns that Prime Minister Theresa May was struggling to manage the Brexit process.
As of today, it had barely changed – rising only slightly to $1.3037.
A shift in global commodity prices affected the Australian dollar as trading got underway. It went down by 0.15% in the AUD/USD pair to $0.7095.
The single European currency did not manage to make any gains. It was at $1.1218 in the EUR/USD pair on Monday.
There’s a lot on the economic calendar for forex traders to watch out for this week.
First off, Canadian housing starts information covering the month of March is due out of Canada at 12.15pm GMT. Year on year, this is expected to show a change from 173,100 to 193,000.
Building permits information for the month of February is due at 12.30pm GMT. Month on month, this is expected to show a change from -5.5% to +0.2%.
US factory orders information for the month of February is due at 2pm GMT. This is forecast to show a month on month change from +0.1% to -0.6%.
Into Tuesday, data on investment lending for homes covering the month of February is expected at 1.30pm GMT. This was last recorded at -2.4%.
Italian retail sales data for the month of February is due out at 8am GMT. This is expected to show a month on month change from 0.5% to 0.1%.
At 10.45pm GMT, there’ll be a speech from Richard H. Clarida, who is Vice Chairman of the Board of Governors of the Federal Reserve System in the US.
Looking ahead to Wednesday, the main event will be a speech from the Bank of Japan’s Governor Haruhiko Kuroda.
At 8.30am GMT, manufacturing production statistics will be released by the National Statistics office in the UK. Month on month, this is expected to show a change from 0.8% to 0.0%.
The European Central Bank will make its interest rate decision at 11.45am GMT. This is forecast to show no change from its current position of 0%.
In the US, there will be a release of the Consumer Price Index excluding food and energy from the Department of Labor Statistics.
This is due at 12.30pm GMT and is expected to show a small change from 0.1% to 0.2%.
The main event in the evening will be a release of minutes from the Federal Open Market Committee in the US, which is due at 6pm GMT.