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Pound and yen on the rise as dollar falls in forex markets

yen note with a british pound on topThe British pound managed to score some gains as forex market trading opened on Monday.

Despite the country’s political system continuing to face problems amid the ongoing Brexit negotiations, the pound managed to rise in the GBP/USD pair by 0.1% to reach $1.2903.

This was down in part to improved retail sales data released on Friday, but also in part to a suggestion that Ireland may be willing to take a softer stance on the Brexit negotiations.

Over in Europe, the euro remained low in the EUR/USD pair at just $1.1292.

The US dollar index, which measures the value of the greenback in relation to six other international currencies, dropped to 96.85.

The Australian dollar went up by 0.1% and reached $0.7144 in relation to its US counterpart. Traders of this currency are believed to be hopeful that there is a trade deal between the US and China on the cards given the deep connections between the Australian economy and that of China.

There’s a busy week ahead in the forex markets and traders have plenty to look out for.

A slow day is expected today (Monday) at least, due in large part to two public holidays which have closed banks in the US and Canada.

There will be a monthly report from the German Bundesbank to watch out for, however. This is due at 11am GMT.

Tomorrow will see the release of the minutes of the Reserve Bank of Australia’s recent meeting, which is due at 12.30am GMT.

Italian industrial sales figures for the month of December are expected at 9am GMT.

British unemployment rates for the same month are due out at 9.30am GMT. These are expected to remain the same as before at 4%.

European construction output figures for December are expected at 10am GMT, while a speech from Peter Praet, a member of the European Central Bank’s Executive Board, will take place at 3pm GMT.

Into Wednesday, there’ll be another speech from the same central banker at 7am GMT.

While over in the US, mortgage application rates for the week of February 15th will be out at 12pm GMT.

Minutes from the Federal Open Market Committee, which is one of the decision-making bodies of the US Federal Reserve, are expected at 7pm GMT.

Thursday will see employment data for January from Australia. The overall change in employment rates is due out at 12.30am GMT and is expected to show a shift from 21,600 to 15,000.

Harmonised consumer price index information for January in Germany is due at 7am GMT. Year on year, this is expected to remain the same at 1.7%.

A preliminary German purchasing managers’ index release for February will also be out at 8.30am GMT.

The day will be rounded off by two major speeches from central bankers. The Bank of Canada’s Governor Stephen S. Poloz will speak at 5.35pm GMT.

Philip Lowe, Governor of Australia’s Reserve Bank, will speak at 10.30pm GMT.

 

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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