The greenback slipped lower despite the absence of market driver data, as well as sterling which depreciated ahead of the U.K. inflation report. On the other hand, the single currency has been broadly lower ahead of the release of the Eurozone’s GDP figure and German ZEW survey. However the focus is the Canadian dollar which rose strongly following the rally of the oil prices.
U.S. Dollar Lower Ahead of Housing Data
The U.S. dollar experienced some weakness on Monday as the NY Empire state manufacturing index fell unexpectedly in May while traders expect U.S. building permits and housing starts for April to be released, as well as industrial production for April. The index, which gauges the condition in New York manufacturing, slipped to -1.0 versus market expectations to rise at 7.0 versus 5.2 the previous month. The National Association of Home Builders released its housing market index for May, which presents home sales and expected home buildings in the future and showed an upbeat increase to 70 from 68 before.
Meanwhile, U.S. Transportation Secretary Elaine Chao stated that U.S. President Donald Trump’s infrastructure plan will be published in few weeks and will call for $200 billion in taxpayer money to generate $1 trillion in private investment. That funds will be used to leverage $1 trillion in infrastructure investment over 10 years.
Read the full report on JFD Research.