Article Highlights

  • Japanese economy contracted by 0.4% in Q2 vs. -0.5% forecast
  • U.K. Rightmove HPI down by 0.8% in Aug
  • Swiss retail sales report due
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Manic Monday? Quite the contrary! Forex pairs were off to a slow start this week since traders are probably holding out for the bigger catalysts later on. A few hours back, Japan printed its Q2 GDP reading and showed that the economy shrank by 0.4%, slightly better than the projected 0.5% contraction. Components of the report showed a decline in exports, investment, and consumer spending, suggesting weaker economic prospects for Japan in the coming months.

Yen pairs shrugged off this release, as USD/JPY continued to trade sideways around 124.40 (+0.05%) and EUR/JPY managed to hold on to 138.00 (+0.02%). AUD/JPY is sitting tight at 91.70 (+0.01%), NZD/JPY is cruising at 81.35 (+0.07%), and GBP/JPY is enjoying a bit of upside at 194.70 (+0.18%). Earlier today, the U.K. printed its Rightmove HPI and actually showed a 0.8% decline in house prices for August.

Dollar pairs are also treading carefully, with EUR/USD struggling to stay above 1.1100 (-0.06%) and GBP/USD consolidating around 1.5650 (+0.10%). Comdolls are looking a tad weaker, with traders possibly pricing in expectations of further commodity price tumbles this week.

Up ahead, forex junkies could spot a few scalping opportunities from the release of the Swiss retail sales (8:15 am GMT) and euro zone trade balance (10:00 am GMT). Swiss retail sales could show an annualized 0.6% decline in June, an improvement from the previous 1.8% year-over-year drop in May.

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