The US dollar traded lower yesterday contrary to the positive data releases coming from the American housing sector. The greenback pushed its way back to 15-year lows against the Japanese yen, and saw declines against the Aussie dollar and euro as well. Traders are anticipating a monetary easing policy by the Fed and this has pressure pushing against any positive news from the US.
Here is a roundup of the events to watch for today:
8:30 GMT: GBP - Prelim GDP q/q
British GDP has been steady for the past few months, but growth remains slow and inflation persists in being a concern for British policy-makers. Today's figures should show positive growth in this quarter's GDP, but may indicate a general slow-down. The pound is likely to see some downward movement if the figure comes out as low as forecasts, but should remain bullish against the US dollar due to speculation of a Fed monetary move in the near future.
14:00 GMT: USD - CB Consumer Confidence
The Conference Board ( CB ) is set to publish its consumer confidence figures for October today. This figure has been in a gradual decline for the past few months, but expectations are for a minor increase this month. If the figures come out much better than expected, then the USD may get a respite from its latest downturn. Traders should bear in mind, however, that speculation still has the greenback bearish in expectation of a money printing policy being enacted by the Fed after their next policy meeting on November 2-3.
