A choppy day of trading took place on Monday for the USD and broad markets. The greenback traded in range against the EUR and GBP, but having started the day off on stronger footing it finished nearly matching values seen just before going into the weekend. There was no major economic data yesterday and markets were left to sift through existing sentiment and move according to the gyrations playing out in bourses. Wall Street had a rather tentative day as traders did take the market higher, but this was after swift losses on Friday and the gains made yesterday were unconvincing. Today will be a big day of data and news, Building Permits and Housing Starts numbers will be released. Both reports are expected to be nearly flat, but there is a suspicion that the outcomes will be worse than anticipated.
Investors will be mindful that Goldman Sachs will release their quarterly earnings today early on. Apple will publish their numbers after the equity markets close. Besides the housing sector data and earnings from the corporate front, traders must remain aware that Ben Bernanke will begin testimony tomorrow in front of Congress, starting with the Senate. The testimony is sure to create a whirlwind, this as the Fed Chairman attempts a difficult balancing act as he tries to calm politicians about the prospects for the American economy, while he tries to also soothe doubts that continue to rumble within the investment sphere. The USD continues to languish in the weaker parts of its range against the EUR, GBP, and JPY and with so many questions still abundant, traders could see more volatility in what are likely to be risk adverse markets.
Written by bforex.com
