The U.S Dollar has been slightly stronger this morning. However, the Euro and Yen remain within their stronger ratios. Important Inflation and growth reports will come from the U.K this week and could impact the Pound.
EUR/USD: Patient Traders Eyeing Italian Elections
The Euro remains within its elevated range against the U.S Dollar and is near 1.2430 early this morning. However, the European currency was pushed backwards on Friday when it was not able to break through resistance. Speculators with patience may try to sell the Euro with the belief the Italian election in two weeks may cause concerns and bring on additional downside pressure.
GBP/USD: Big Week of Data for Pound
This is an important week for U.K data as the Bank of England will conduct Inflation Hearings and issue growth numbers one day later. The Pound is around 1.4030 against the U.S Dollar. Sentiment is spotty for the British currency as the Brexit cloud hovers with unsolved riddles, and from overseas the U.S Fed lurks. Short term traders may look for headwinds near term.
USD/JPY: A Weaker Yen from this Juncture
The Yen has been fairly consolidated, but it has lost marginal value to the U.S Dollar and is near 106.40. The Nikkei Index has advanced briskly with big gains this morning. Trade Balance numbers released from Japan earlier proved strong. Speculators with courage may believe the Yen can get weaker from this juncture.