The U.S. Dollar retreated after last week’s announcement of the U.S. leaving the Iran Nuclear started setting the greenback to erase gains.
USD
Investors are concerned that the U.S. may continue to leave other pacts and NAFTA is immediately on the table for this week. The prospect of the administration changing more deals or refusing to participate in them is currently a dollar-negative development.
Retail Sales, Industrial Production, and Housing gauges will help establish whether the U.S. Economy is healthy enough to merit more Fed hikes. Ultimately, these data points will help guide the buck’s direction throughout the week.
EUR
The Euro is in for an important week as a revision of Gross Domestic Product figures comes out Tuesday while inflation in the form of CPI is out Wednesday. European Central Bank President Mario Draghi is also expected to speak on Wednesday and could provide insight on his take of recent economic and political developments in his home country.
Indeed, Italy had major changes over the weekend as the Five Star Movement and The Northern League, both non-traditional anti-establishment parties, established a coalition. The rightist and leftist extremism elements seen across the two will make for an interesting style of leadership.
GBP
The Pound staged a bit of a comeback after dollar-negativity took away losses after the Bank of England’s decision not to hike. Furthermore, Sterling is under pressure as this week Prime Minister Theresa May tries to have her cabinet unite over a customs-union strategy. The leader of Britain would like a specialized deal that would maintain plenty of EU rules in place. Out of 28 members of her full cabinet, 12 are expected to go against her.
