Forex

Market participants’ focus on the FRS policy announcement

By Forex-Metal

Asian and European trading sessions

Euro: The EUR/USD pair traded in the range of $1,3270-$1,3300. Against the background of the US dollar weakness, the euro was also supported by the Euro-zone fundamentals, which should not be underestimated. The Bank of France business sentiment turned out to be at the 101 level, according to the expectations. And the Euro-zone Sentix Investor confidence was 8.5 against its forecast of only 1.6.

US Dollar: US dollar traded at its 3-months minimum level against the euro due to the expectations for the FRS meeting. According to the forecasts, the FRS policy announcement will include additional measures aimed to stimulate the economy. Market participants do not expect the principal rate to be increased.

British Pound: The GBP/USD rate showed movements in the range of $1,5940-$1,6000.

Japanese Yen: The US statistics, which was released on Friday last week, brought US dollar to its minimums against the Japanese yen. The USD/JPY pair showed maximums at the level of Y85,70.

Australian Dollar: The Australian home loans dropped for 3.9% on Monday against the expected decrease for 2.0%. As a result, the speculations regarding the fact that the Reserve Bank would not increase the principal rate, grew even stronger. The Australian dollar rate weakened.

Oil: Oil prices were supported as the expectations for the US Retail Sales figures showed increase. Market participants’ optimism in regards to the rehabilitation of US economy grew.

Gold: The gold rate increased as well to the $1,208.70 per ounce price.

American trading session:

British Pound: The sterling was seen to step back from the previously reached achievements. The RICS house price balance for July showed unexpected drop for 8.0% against the predicted increase for 0.5%. Market participants are expecting the Great Britain total trade balance figure to be published on Tuesday.