The dollar appreciated on Monday although it did so at a limited pace. Most of the crossings had limited tours at the beginning of the week continuing the tours of the American session on Friday, albeit at a slower pace.
It will be a week in which the look in the United States will be on the project of tax reform and on employment data. On the side of the Congress will begin to see in what time the reconciliation between the law that was approved in the House of Representatives and the one voted in the Senate can be ready. In turn, the employment data (Wednesday ADP and Friday non-farm payrolls), may not come to generate surprises and have a low influence on the expectations of what the Federal Reserve will do next week, which discounts a rise in the rate.
The political context around President Trump is also a factor that can generate surprises at any time with the investigation on the influence of Russia in the elections.
The EUR/USD started the week with a bearish gap that remains open and fell but remained above the 1.1800 area. The USD/CHF rose but also could not exceed the highs on Friday. The USD/JPY approached 113.00 but did not manage to settle above and by the close of the day it was retreating.
The crosses of the pound were the ones that moved the most. They made a jump when a possible agreement was reached between the United Kingdom and Ireland for the border after Brexit. Then, after the meeting between Prime Minister May and the top representatives of the European Union, it became clear that an agreement had not yet been reached and the pound lost much of that gained ground. The GBP/USD traded above 1.3500, but could not be maintained.
The currencies linked to commodities fell slightly against the dollar. The fall of the Asian session remained the rest of the day. The strongest of the group these days is still the loonie, after the data from Canada last week. Regarding that currency, attention is focused on the Bank of Canada meeting on Wednesday.
Tuesday may be a session moved for the Australian dollar. In addition to the publication of data from Australia, the central bank will decide on monetary policy. No changes are expected in the interest rate, but the statement is usually relevant to the foreign exchange market.
Written by: FXStreet