The U.S. dollar continued to strengthen on Monday. The gains came as the markets opened to the weekend news reports about the U.S. Treasury Secretary announcing that the U.S. had put on hold its trade war against China. Both administrations are expected to chalk out a mutually beneficial deal which includes China increasing its imports from the U.S. to reduce the trade deficit.
On the economic front, the data was rather limited. From the Eurozone, Italy continues to remain a key factor for investors.
Looking ahead, the economic calendar for the day will see the release of the UK’s Public sector net borrowing data. Estimates show that public sector net borrowing is expected to rise 7.2 billion. This is later followed by the UK’s inflation report heading.
The U.S. trading session is relatively quiet with the release of the wholesales sales report from Canada followed by the U.S. Richmond Fed manufacturing index. Estimates point to a robust increase in the Richmond Fed manufacturing index to 9 following a decline to -3 previously.
