The US dollar showed signs of weakness at the start of the forex trading week, as the absence of US traders who were on a Memorial Day holiday left the dollar with very little support.
There were no reports released from the US economy then as banks were also closed for the holiday. Durable goods orders data are due today, with the headline figure likely to show a 0.5% decline and the core figure set to print a 0.2% uptick. The previous month’s readings were revised higher though so this should provide a bit of backing for the U.S. currency unless the actual figures come up short.
The euro recovered in recent forex trading despite the recent election results showing a landslide victory among EU critics. For many, this led to hopes that better reforms could be implemented when it comes to tackling the economic slowdown and government budget problems. GfK German consumer climate data showed the expected 8.5 reading, which revealed no change in sentiment. For today, there are no reports due from the euro zone but ECB head Draghi has a testimony scheduled.
The pound bounced back to forex trading action despite the lower liquidity with UK traders off on Spring Day holiday. There were no reports released from the UK then and only the BBA mortgage approvals report is up for release today. Lower mortgage approvals of 45.2K are eyed versus the previous 45.9K figure, which might lead the pound to return some of its recent wins.
Forex Trading Economic Review
The franc took advantage of dollar weakness in recent forex trading but it appears that the rally was merely a retracement. Swiss trade balance is due today and it might show a bigger surplus of 2.43 million CHF from the previous 2.05 million CHF, which might lend more support for the franc.
The yen lost ground to its counterparts as risk sentiment picked up and traders started pricing in the possibility of seeing weak data from Japan later on this week. Take note that this will be the first set of reports which include the impact of the April sales tax hike so declines are expected. For now though, Japan’s economic calendar is empty.
The comdolls regained composure in recent trading sessions as risk sentiment improved. There were no reports released from the comdoll economies yesterday and none are due today, suggesting that more risk-based moves might be seen.
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