The U.S. Dollar extended declines on Monday. Economic data on the day was sparse. The Eurogroup meetings kicked off with focus turning to the Brexit deal. The EU’s negotiator for Brexit, Michel Barnier said that the EU ministers were in support of the draft accord. However, uncertainty remains with PM May and her cabinet. The pound sterling was seen trading subdued due to this uncertainty.
The NY trading session was also relatively quiet with no significant events being released. The FOMC member, Williams was speaking yesterday. His comments were broadly positive of the U.S. economy and supported the Fed’s view for rate hikes. A contrary comment compared to the views from the Fed vice chairman, Clarida on Friday.
Earlier today the RBA released the monetary policy meeting minutes. The market reaction was muted. The RBA Governor, Lowe is scheduled to speak later this morning.
The European trading session is relatively quiet with no major releases in store. The NY trading session will see the release of the building permits and housing starts data. Building permits are forecast to rise by 1.26 million while housing starts are expected to increase by 1.23 million.
The recent slowdown in the housing market, however, exposes the risk of a weaker than expected print.
