Let’s check the changes in the market. On late-week gains, dollar hangs.
The Australian dollar is capped by rate-cut risk. Nevertheless, it drifts higher.
Near a one-week high against the euro, at $1.1096, the dollar held steady. Against the Japanese yen, the dollar was below an eight-month peak at 110.19 yen per dollar.
Head of Research at Melbourne brokerage Pepperstone is Chris Weston. He said that people are just searching out good news across the world.
He added that an emerging theme is driving FX in 2020. Because of the absence of central bank divergence, the emerging issue is economic divergence and relative economic trends.
On Friday, figures showed that United States homebuilding surged to a 13-year high in December. Retail sales are also on the rise. The manufacturing gauge activity rebounds to its highest in eight months.
Nobody thinks that the United States Federal Reserve will cut rates when it meets at the end of the month, suggests futures pricing.
As European economic data points in the opposite direction, the strength comes. Last week the German economy posted its weakest growth since 2013. Meanwhile, British inflation is anemic, and retail sales are sliding.
On Monday, the pound edged lower to $1.3002. It is the weakest indicator in a week. The dollar was steady at 97.620 against a basket of currencies. It was a whisker below a three-week high hit on Friday.
Leading into a United States holiday trade was tepid on Monday.
Meanwhile, on Friday, China posted its slowest annual growth figure in almost 30 years. Nevertheless, the December data showed quickening factory output and revived business confidence.
China’s financial markets depend on whether the benchmark lending rate will be kept steady in response or lowered.
It is the major news on Monday.