The theme in the past week continued to be a weaker dollar. Not all currencies enjoyed this equally - the Aussie and the euro are the big winners, while the British pound and the Canadian dollar are enjoying modest gains. Today, the focus will be around data from Britain and Europe.
Expectations: -0.2%. Previous -0.1%.
Surprisingly, the British housing sector has begun to show signs of decline over the winter months. This housing sector figure is likely to show a continuation of this shift, with a slightly worse -0.2% decline this month. This may be positive for risk aversion in the forex market and could help reverse some of gains seen in the GBP/USD.
Volatility is often experienced during the announcement of this report as traders attempt to decipher interest rate clues. This could bring further easing in the pound. The GBP/USD is currently trading above the 1.6275 resistance level and may traders may therefore be anticipating a corrective move today. A retracement below this line could take the pair to the next target at 1.6100, especially if risk aversion rises from below-forecasts data in Britain and Europe.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.