As was largely expected trade on Monday was very subdued with the US close for a holiday and liquidity severely limited as a result. The index remained for the most part in a 20-point range as traders waited for liquidity to return to normal and sent most major currencies sideways. Early in Asia we have seen the dollar climb quite sharply as the euro lost a significant amount of ground in opening trades. The Bank of Japan and Reserve Bank of Australia both kept their interest rates on hold as was largely expected but have failed to materially factor into price action.
Looking ahead, we have the Swiss unemployment report and some German factory data in Europe and another quiet calendar in the US session so we suspect traders will be trading of macro issues and the state of the recovery. We expect trade will remain relatively quiet until the US session as traders wait to see if North American equities can continue their stellar start to the month of September.
Written by Jonathan Granby, DailyFX Research Team
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