The U.S. dollar is in familiar ranges to open the week after strong economic data gave the greenback a boost on Friday.
Friday’s data revealed stellar jobs numbers, despite generally weak wage growth, and decent manufacturing data.
Trade tensions will remain on our radar. The South China Morning Post reported yesterday that President Trump and Chinese President Xi Jinping are considering a meeting at the end of the month in Vietnam. The President will give his state of the union address tomorrow with worries of a new government shutdown looming on February 15th.
Later this morning, factory orders and durable goods will cross the wire and both are expected to show an improvement. This week also will see a host of Fed speakers but only Cleveland Fed President Loretta Mester will speak today. Expect more range bound trading today before more data and Fed speakers spark volatility throughout the week.
What to Watch Today…
- • Durable Goods and Factory Orders
The Australian dollar was the biggest loser overnight and continues to slide in early trading. Building approvals unexpectedly fell causing investors to increase bets the Reserve Bank of Australia will take a more dovish tone. The RBA will keep their policy unchanged tomorrow but comments from Governor Philip Lowe could move AUD/USD.
The British pound was under pressure against the U.S. dollar last week and the trend continued overnight. GBP/USD will continue to be at the mercy of Brexit headlines but expect mostly quiet ranges ahead of the Bank of England’s Super Thursday. The central bank will keep its current policy in place but traders will focus on the banks outlook for the economy and inflation. The outlook will be taken with a grain of salt due to the uncertainty surrounding Brexit.