The euro faced a thin day of trade with the lack of data limiting momentum in most of the single currency’s crosses. The agenda picks up only marginally with the release of German inflation figures and Italian industrial orders. Data reminding markets that soft price pressures and weak growth still plague Europe may not put the euro on good footing.

Sterling

After comments from policy makers last week suggested there is no change to its policy outlook and interest rates will remain low for some time, figures could once again challenge the Bank of England’s dovish stance. The consumer and producer price figures are expected to come in slightly higher than in prior months. After a sharp decline was seen in sterling last week, data could be a catalyst to take profit on those short sterling positions.

US dollar

The US dollar has maintained recent ranges against most major currency crosses. There is a lack of economic data until the FOMC will release the minutes to its April policy meeting. Positioning in front of that release could drive currency markets as speculation over a dovish committee could limit the dollar’s ability to make gains.

Japanese yen

The Japanese yen has lost some ground as equity markets begin to stabilise. The Bank of Japan is holding its monetary policy meeting, with the central bank widely expected to leave its policy unchanged. Japanese trade figures are also due out, with forecasts set for the deficit to widen.

Australian dollar

The Aussie dollar has fallen on hard times with the release of the central bank’s minutes and comments from S&P having an impact. The minutes of the policy meeting suggested that interest rates will remain low for some time and that inflation is currently consistent with the bank’s target. The rating agency warned that Australia’s AAA rating could be lowered unless significant cuts are made to the country’s budget.