US economic data releases on Monday did not bode well for the dollar on the whole. A manufacturing indicator showed slow growth, dropping to 3-month lows, while industrial production was also down on expectations; the combination of these events tested the recent US dollar strength.
Housing data today is expected to show a steady figure along with new building permits. However, the spotlight for this week will be on US Federal Reserve Statement, and the press conference that follows. As the market expectation of a mid-year Interest rate rise draws closer, we are expecting the statement to touch on interest rates. With strong employment figures out in the start of the month it will be interesting to see the central bank members’ views on a possible rate rise this year, and whether there will be any changes in their language as pertaining a potential rate hike.