The US dollar was seen recovering on Monday as geopolitical tensions eased pushing risk appetite higher. The US dollar index, which was seen trading below 91.85, was seen attempting to pull back higher after the index filled the gap from December 2014. The lack of economic data saw the markets taking cues from the global developments.
On the economic front, data yesterday saw Canada’s housing starts rising 223k on the month, beating estimates of 216k and accelerating slightly higher from the previous month.
Looking ahead, the UK’s inflation data will be main focus today. According to the estimates, consumer prices in the UK are forecast to accelerate 2.8% in August, up from 2.6% in July. Core consumer prices are also expected to rise 2.5%, slightly up from 2.4% previously. The data marks the start of a busy week for the British pound which will also include the UK parliamentary vote on Brexit as well as wage data and the BoE’s meeting.