Early in the Asian trading session on Monday the U.S. dollar was trading near a six-month high of 112.79 hit on Friday as traders waited for news that is expected to be released later in the week. As of 10:24 a.m. HK/SIN, the dollar was trading at 112.48 against the yen, up 0.11 percent. The dollar was also up modestly against the euro trading at $1.168.
Traders are keeping their eyes on the simmering trade tensions between the U.S. and China as well as the release of June retail sales and industrial production numbers which will be released later on Wednesday.
Also of importance this week retail sales reports from the U.S. China’s GDP was released early on Monday and the country hit the target of 6.7 percent expected. Beijing’s official GDP numbers are an important measure of the country’s economic health. China’s first quarter GDP was 6.8 percent, but the country has been cutting risky credit recently as trade tensions heat up with the U.S. The Chinese GDP report coupled with the U.S. retail sales numbers are expected to reassure traders that global growth remains on the rise.
Joining the global news docket this week will also be a vote by British lawmakers on the amendments to the government’s post-Brexit customs policies. Euro-skeptics are expected to vote in favor of amendments that are opposed by British Prime Minister Theresa May. Even if May doesn’t lose the vote on the amendments the results are expected to challenge her authority and to potentially lead to changes in her overall plan. The pound was slightly lower against the euro on Monday morning, trading at 0.8824. It was trading stably against the dollar at $1.3235.
Finally, on Monday, U.S. President Donald Trump will be meeting with Russian leader Vladimir Putin for their first-ever summit. Though Trump has said publicly that he has “low expectations” for the summit, traders will be watching eagerly to see if there are signs for political alliances that will impact the financial world.