2 Hr USDollar GMT MarketScope Chart, Created by Adrian Robles
The trading week is off to a slow start with the GBP, AUD, CAD, and CHF carving out fresh lows in daily volatility against the US Dollar for August. As a result the DOW Jones FXCM US Dollar Index traded in a relatively tight range of 50 points today.
Focusing on the smaller movements and intraday events this Monday, the UK reported a slower growth in housing prices. Following the release of the UK data the USD continued its correction off of Friday’s rally. The US Dollar received some relief after a press release noted that EU Construction Output declined at a slower rate in June than in May, pointing to the possibility of growth in July. Though the EU has seen a prolong contraction in construction which may continue. The Index’s intraday advance ended on the announcement of the July Chicago Fed National Activity Index, which rose slightly on improved production and income figures.
Tuesday’s trading session will begin with the release of the Reserves bank of Australia’s board minutes and the New Zealand two year inflation expectations. Traders will be looking to see if tomorrow event docket will be able to stir up the market or if volatility will remain subdued.