The dollar is currently turning in a mixed performance at the start of the new trading week. The U.S. currency is modestly higher against both the Euro and against the Japanese Yen Monday, but is losing ground against the pound sterling, after the Bank of England held firm on interest rates.
There has been no U.S. economic data released Monday and very little global economic data overall, keeping some investors on the sidelines. However, there are several important U.S. reports due to be released later this week. Retail sales are slated for Wednesday, PPI is scheduled for Thursday and industrial production is out at the end of the week.
Eurozone finance ministers are scheduled to meet in Brussels today to take note of the Greek government’s progress in the implementation of structural reforms in exchange for bailout funds. The Greek government has reportedly “executed” the order to make a scheduled loan repayment of 750 million euro to the International Monetary Fund tomorrow.
The dollar rose to a high of $1.1130 against the Euro Monday, but has since eased back to around $1.1160.
Germany’s manufacturing turnover dropped for the second straight month in March, figures from Destatis showed Monday. Manufacturing turnover fell a seasonally and working-day-adjusted 1.0 percent month-over-month in March, faster than previous month’s 0.8 percent decrease, which was revised from a 0.7 percent decline estimated earlier.
Greece’s industrial production growth markedly improved in March at the fastest rate in more than four years, data from the Hellenic Statistical Authority showed Monday. Industrial production grew 5 percent annually after a 1.9 percent rise in February. Production rose for the second straight month.
The Bank of England left its key record low interest rate and the size of the quantitative easing unchanged ahead of the publication of its latest quarterly update on inflation later this week, amid low inflation and signs of slowdown in the economy.
The Monetary Policy Committee, led by Governor Mark Carney, decided on Monday to retain the key bank rate at 0.50 percent and the size of asset purchases at GBP 375 billion.
The decision was in line with economists’ expectations. The rate has been at a historic low since March 2009. The previous change in quantitative easing was an increase of GBP 50 billion in July 2012. Economists do not expect the bank to raise rate until the next year.
The announcement of the decision was postponed from last Thursday as it coincided with the general election that sprung a surprise, by returning Prime Minister David Cameron and his Conservative Party to power with sole majority.
The buck reached an early high of $1.5392 against the pound sterling Monday, but has since dropped to a 5-month low of $1.5590.
The greenback has climbed to around Y120 against the Japanese Yen this afternoon, from around Y119.800 this morning.
The material has been provided by InstaForex Company – www.instaforex.com