The pair did an upside correction to halt the drop witnessed last week that was led by the dollar’s advance on the back of the concerns from the euro area which boosted safety demand on the greenback as a safe harbor.
On Monday, amid the absence of data from both economies, the pair followed the general sentiment in the market which saw correctional movements after last week’s bearishness, where the main direction for the pair will probably depend on the Sarkozy-Merkel meeting’s outcome on Monday and the latest developments in the euro area in the coming period, ahead of awaited bond selling from Italy and Spain and other euro zone economies.
On Tuesday, theU.S.economy will release less important data, including wholesales inventories as of 15:00 GMT.
The data is expected to has a slight affect the pair’s movement due to its low relevance, where the pair will probably also be affected by the general sentiment which is focusing on the latest developments from the euro area.
This week, the main focus will be on the BoE rate decision, trade, manufacturing and inflation data from theU.K.while theU.S.will release retail, trade and confidence, as well as other data.
Originally posted here
