Investors are waiting for several U.S. economic data to be released this week and speeches by the President of the European Central Bank and the Federal Reserve Bank. As a result, the U.S. Dollar traded slightly lower against major currencies in early morning trading in Sydney. On June 2, 2008, at 11:00 am (01:00 GMT), the U.S. Dollar traded at 105.27 Yen, compared to 105.50 Yen, while the Euro traded at $1.5557, compared to $1.5552 in late Friday trading in New York.
Today, the ISM U.S. Manufacturing index for May will be released, which will give investors the direction of the U.S. economy. On Friday a key data, non-farm payrolls, for May will be released.
With regard to the speeches by the Fed and the European Commercial Bank, investors will be interested in finding out if the Federal Reserve rate cutting exercise is over. It is expected that the speech by ECB President, Jean-Claude Trichet may reflect a shift from inflation to economic activity.
It appears that there is economic slowing in the Euro zone at the time when the U.S. economy is beginning to show signs of recovery. This development will certainly change the dynamics in the forex market. Investors are not totally persuaded that the U.S. economy is out of the woods and as such, this week’s data releases will be securitized very carefully.