The US Dollar rally paused on Monday despite the latest surprisingly upbeat data. Analysts say that the data is enough to convince FX traders that the slowdown in economic activity is a thing of the past. Currency strategists anticipate a volatile week for the FX market with key fundamental news coming out of the UK (the Brexit talks), a policy meeting for the US Federal Reserve Bank, and data on payrolls and core inflation in the US, any of which could trigger volatility spikes. FX traders are curious to see what kind of spin the Fed puts on the strong first quarter GDP which economist say was almost entirely due to one-off events.
As reported at 11:35 am (GMT) in London, the EUR/USD was trading higher at $1.1156, a gain of 0.0691% and off the session peak of $1.11672 while the low was recorded at $1.11419. The GBP/USD was trading higher at $1.2927, up 0.0766%; the pair has ranged from $1.2916 to $1.12947 in today's trading day. The USD/JPY was trading at 111.7390 Yen, up 0.1335% and off the session peak of 111.778 Yen.
Data Eyed in the US
A slew of economic data relating to personal consumption and personal spending will be released later today in the US with economists predicting a slight fall in the numbers, generally across the board. Personal income for March (month-over-month) is predicted to rise. There is growing speculation among FX traders that the Fed is now likely to lower the number of rate increases it had initially intended to push through this year.