The US dollar weakened against most major currencies ahead of the release of key economic data, except for a slight gain against the Japanese yen.
Last week, weaker-than-expected economic reports and speculation that President Donald Trump’s tariffs would be short-lived contributed to the dollar’s decline. Analysts at ING noted that US trade policies, especially those involving Mexico and Canada, remain a key factor influencing currency movements.
This week, investors are closely watching several economic indicators, including:
- Tuesday: Non-manufacturing data from Philadelphia, Richmond, and Dallas Fed banks, weekly Redbook same-store sales, and home price reports.
- Wednesday: Weekly mortgage applications, new home sales, and petroleum inventory data.
- Thursday: Second estimate of Q4 GDP, weekly jobless claims, durable goods orders, and pending home sales.
- Friday: Reports on personal income, spending, inflation, trade data, and the Chicago PMI.
Currency Market Overview
- EUR/USD rose to 1.0471 from 1.0460 at the previous US close.
- GBP/USD climbed to 1.2640 from 1.2630, with investors awaiting a speech by Bank of England officials.
- USD/JPY increased to 149.7910 from 149.1691, although it remained below last week’s high of 150.4032.
- USD/CAD declined to 1.4216 from 1.4229.
With upcoming economic data releases, traders are expecting continued fluctuations in the forex market, particularly as central banks prepare for their next policy meetings.
