The dollar traded mixed on Monday after upbeat commentary from the Fed failed to stimulate demand. The greenback ended the day at 1.3513 to the euro and 92.36 to the yen. News out today includes the ISM Non-Manufacturing Composite with a fall to 55.0 expected.
The euro weakened on Monday as a result of political uncertainty in Spain and Italy and fears that the renewed strength of the currency might hamper exports. The euro ended the day at 1.3513 to the dollar and 124.81 to the yen. Today’s data includes Services PMI and Retail Sales in December.
The pound rebounded on Monday despite a lower-than-expected result in Construction PMI which remained at its previous level when it had been forecast to rise. Sterling ended the day trading at 1.5760 to the dollar and 145.56 to the yen. Today sees the release of Services PMI for January which is expected to show a rise to 49.5.
The yen recovered on Monday as a result of increased safe-haven demand following concerns about political stability in Europe. The Japanese currency ended the day at 92.36 to the dollar and 124.81 to the euro.