- U.K. Rightmove HPI down by 2.9% in August
- Australia’s new motor vehicle sales slump by 1.3%
- Chinese foreign direct investment down by 0.4% in July
- Nikkei closed up by 0.03% for the day
- Euro zone trade balance and German Buba report due
Most dollar pairs gapped over the weekend as risk sentiment showed a bit of improvement and traders booked profits ahead of this week’s key events. EUR/USD started off at 1.3384, GBP/USD opened at 1.6736, and USD/CHF kicked the week off at .9038.
Data releases in today’s Asian trading session showed signs of weakness, as the U.K. Rightmove HPI marked a 2.9% decline in house prices for August while Australia’s new motor vehicle sales report indicated a 1.3% drop. China reported a 0.4% decrease in foreign direct investment for July, erasing part of the 2.2% gain seen in the previous month. Despite that, the Nikkei managed to close with a 0.03% gain for the trading day.
Price action was relatively quiet among the majors, as GBP/USD is fighting to stay above 1.6700 and has yet to close its weekend gap. Yen pairs are slowly grinding higher, thanks to traders’ renewed appetite for risk, with AUD/JPY testing the 95.50 handle and GBP/JPY reaching a high of 171.30 as of this writing.
Only the euro zone trade balance and the German Buba report are up for release in today’s London trading session, with the euro region’s trade surplus projected to narrow from 15.3 billion EUR to 14.9 billion EUR. Weaker than expected results could be bearish for the euro, as traders are anticipating a slowdown in trade activity later on due to the sanctions imposed by Russia on European food imports.
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