Forex was extremely quiet on Monday as investors anticipate critical Consumer Price Index results from the States today. The Euro, Pound, and Yen should be watched closely for developing volatility later.
EUR/USD: Forex Awaits U.S Inflation Data
For those who walked away from their trading terminals yesterday and didn’t look at the Euro versus the U.S Dollar, you may believe forex was closed on Monday. In fact it wasn’t, the flat session which left the Euro nearly unchanged occurred as a large amount of investors wait for today’s inflation data from the U.S which will impact the markets. Speculators may look for upside from the Euro, but they should be careful.
USD/JPY: Strong Reversal for U.S Crude Oil
Producer Price Index data from Japan met its target this morning, and the Yen has remained incrementally within the weaker realm of its rather strong values against the U.S Dollar. The Yen like other major currencies will react to the U.S CPI statistics later today. The Yen is near 106.70 versus the U.S Dollar.
GBP/USD: Annual Budget Release Coming
While many forex traders anticipate the U.S data today, the U.K will publish its important Annual Budget Release later this morning and its results will affect the Pound. The British currency remains fractionally below the 1.39 level versus the U.S Dollar. Some speculators may believe the Pound has room to gain near term.