Forex: Monday's review
The euro fell against the dollar, snapping a five-day gain, on concern the region’s debt crisis will worsen even as European finance ministers meet today to hammer out a new strategy to stem the contagion.
German Finance Minister Wolfgang Schaeuble said on radio station Deutschlandfunk that the nation opposes increasing the size of the euro area’s bailout fund.
Bank of Japan Governor Masaaki Shirakawa said European financial markets remain unstable because of concern about the long-running crisis.
Australia’s dollar dropped to a six-week low versus New Zealand’s on concern record flooding will curtail economic growth.
EUR/USD: on results of yesterday's session the pair decreased below a mark $1,3300.
GBP/USD: the pair shown high in the field of $1,5960, decreased in around $1,5880 later.
USD/JPY: the pair bargained within the limits of Y82,30-Y83,00.
The EU finance ministers meet in Brussels today and the monthly IEA oil market report is due at 0900GMT. German data at 1000GMT includes the January ZEW survey, where the expectations and conditions index are expected to both improve to 8.4 and 83.2.
UK data starts at 0930GMT with the UK DCLG House Price Index and also UK December inflation data due. CPI is expected to rise 0.7% m/m, 3.4% y/y with core-CPI at 2.7% y/y. Meanwhile, RPI is expected to gain 0.8% m/m, 4.8% y/y with RPIX at 0.7% m/m and 4.8% y/y.
US data starts at 1330GMT with the NY Fed Empire State Survey, where the index is expected to rise to a reading of 14.0 in January after see-sawing in the previous two months. Annual revisions will be included with this month's data. At 1400GMT, the Bank of Canada makes it's interest rate announcement and economists agree on unchanged rates.
They all believe some of Canada's downside risks to growth will be alleviated by the new United States fiscal package for stimulation of that economy and thus imports from Canada, but that the BOC will prefer to wait and see.
Further US data includes the TIC data at 1400GMT, the weekly MNI Capital Goods Index at 1430GMT, the Housing Market Index from the NAHB at 1500GMT and the weekly MNI Retail Trade Index at 1530GMT. Late US data then sees the weekly ABC/Washington Post Consumer Confidence Index at 2200GMT.