The forex day trading markets appear to be quiet as the week starts. The US dollar, for example, has barely moved and has been trading in a very narrow range, around 104. Last week, by comparison, had a very stark downward movement for the Greenback. US stock futures indices were also lower in this period.
For now, traders are waiting to see how the US market is doing. This means forex fundamental analysis. They will mainly be monitoring how the 20-year US Treasury bond sales will do. Meanwhile, there will also be data for construction output coming out that is worth paying attention to in the European session.
When it comes to Asia, there are several points to consider that may affect trader sentiment. For one, the Central Bank of China announced that it would not change its loan rate. The Hang Sang index in Hong Kong rose by 1.5%, outperforming the Shanghai Composite’s 0.5% rise.
The AUD/USD currency pair has been gaining momentum, rising to its highest point for months. Traders will be keeping a close eye on the RBA. The bank is having a meeting soon, and the minutes should have implications for forex patterns going forward.
The EUR/USD pair also rose this time, increasing by 2.0%. Now, the pair is above the 1.09 point and may continue on this trajectory. We have seen it rise to 1.095, in fact, in the Asian session.
The GBP/USD pair saw similar movements in terms of forex day trading. Last week was unfortunate for the pair, seeing a considerable loss. However, now the pair advanced beyond 1.25 when the weekend was coming up. It appears to be stable around this point as of Monday, but we will have to see if it consolidates its gains. The upcoming BoE statements will be important for determining the future of this pair.