Forex Investment and Currency Trading

European equity markets have clawed back early morning losses and are now trading in positive territory as US equity futures point to a stronger opening. USD, JPY and CHF have been the main casualties during the session as high beta FX such as AUD, SEK and NOK have performed strongly. NOK received a boost following stronger than expected inflation data which raises doubt over whether Norges Bank will pull the trigger on further easing later this month. SEK has remained resilient to softer than expected industrial production data, though industrial orders posted their first m/m rise since June. GBP has suffered following softer than expected RICS house price data and an exceptionally soft industrial production report. Analysts believe that further GBP weakness, particularly versus EUR is likely in the coming months.

The release schedule in North America is relatively light, so equity markets will once again dominate price action. However, it will be interesting to note whether industrial orders are showing any signs of stabilization. In the US, the focus will be on the auction for 3-year notes and will be followed by the auction for 10-year note on Wednesday and the 30-year bond on Thursday