Low activity in the market as the lull before the storm
There was US dollar correction against all the major currencies on Monday in anticipation of important data and statistics which will be published between Wednesday and Friday. Not only USA economic statistics will be published, but also ADP Employment Report and non-farm statistics, which may have an impact on USD. What is more, ECB group and Bank of England group meetings will take place, which can either have positive or negative effect.
If to speak about Bank of England and ECB group meetings, we do not expect anything special in their statements. It is expected that interest rates will remain the same and there will be no massive changes in monetary policy. That is why data from USA will have a massive impact on EURUSD and GDPUSD pair dynamics.
If to speak about the possible developments on the currency market we can make a prediction that starting from Wednesday as soon as ADP Employment Report is published there will be an increase in activity in the market. If general statistics from US is good enough it will help US dollar to keep a sustained growth against all the major currencies in a short-run. That is why we believe, it is a good deal to buy US dollars on local minimums in case there is good news from the United States of America.
