Last week, the pair continued its fall for the second week as the dollar took advantage of the safety demand amid the undergoing concerns from the euro area which overshadowed the improvement inU.S.fundamentals.
Although the non-farm payrolls showed higher-than-expected added jobs and drop in unemployment, the sentiment remained clouded with uncertainty beforeSpainandItalyauctions debt this week, especially after the decline in demand on German bonds and rise in French bond yield at auctions last week.
On Monday, Both economies lack economic fundamentals which propose that there would be calm trading on the pair which is predicted to follow the general trend in market as it will not able to get direction from data.
The pair’s movement will probably be affected by the general sentiment which is focusing on the latest developments from the euro area.
Later in the week, the main focus will be on the BoE rate decision, trade, manufacturing and inflation data from the U.K. while the U.S. will release retail, trade and confidence, as well as other data.
Originally posted here
