The USD lost some ground to the EUR and GBP as rather tentative trading took place across the broad marketplace. Participants seemed content to range trade on Monday as rather lackluster data from the States again was published. The Empire State Manufacturing Index turned in a reading of 7.1, which was a full point below the expectation of 8.1. The NAHB Housing Market Index also turned in a negative mark of 13, below the estimate of 15. Thus, the manufacturing and housing sectors buoyed what has become a poor outlook to begin the week. Wall Street turned in a mixed performance within the major indexes, but investors are clearly unconvinced that a bull run will suddenly break out.
Today Building Permits and Housing Starts data will be published and the expectations are nearly flat. Also Industrial Production figures will be brought forth. The Mortgage Delinquencies report has until the 27th of August to be released and is only listed as tentative for today. Investors will look at today’s numbers carefully. Tomorrow there is little in the way of economic news, but on Thursday the weekly Unemployment Claims and the Philly Fed Manufacturing Index will come. Essentially after a steady flow of troubling data from the U.S. and a very cautious FOMC Statement last week, investors who have been sitting on the fence may believe that an autumn of discontent may be approaching in the equity markets. Traders will have to pay close attention to Wall Street and the bond markets in order to gauge prevailing sentiment. The USD lost a touch of ground yesterday, but traders should expect to see the possibility of safe haven postures to occur.
Written by bforex.com