Monday’s trading proved rather muted for the USD, which managed to trade largely in range against the other major currencies before going into to the weekend and while opening up trading this week. The USD did lose ground to the EUR earlier last week, but stability has come into the mix as a good deal of caution remains throughout the broad markets. Wall Street continued to trade in a rather motionless manner yesterday as investors await the wave of quarterly earnings that are now beginning. Volume in the markets has been low and while this may have to do with summer, it also indicates that questions are prevalent because of fragile sentiment. There was little economic data from the U.S. yesterday and today only the Trade Balance numbers are on the schedule. Tomorrow Retail Sales figures will come from the State and its results will be of an interest.
The talk on the street remains focused on the prospects of the U.S. economy to achieve growth and this essentially will be mirrored within corporate reports that will begin appearing in mass starting today and throughout the next few weeks. Alcoa kicked off earning season last night with a better than anticipated report. The crux of the matter is that the U.S. has not been able to fix its unemployment problem and job creation is weak. The housing sector is also vulnerable and because of this consumer spending remains reigned in. The Preliminary Consumer Sentiment reading from the University of Michigan will be published on Friday and this will also be a lynchpin for investors who are trying to gauge the direction of the markets. The USD continues to trade within the context of its rather strong trend against the EUR and GBP due to the questions that are besieging Europe and the U.K. economically. While dark clouds certainly shadow the U.S. it still appears that its storms appear less severe than their counterparts for the time being and because of that the USD will still find a crowd of backers.
Written by bforex.com
