The euro started the week reaching new lows which haven’t been seen since the end of January; it was last down to 1.1158 against the greenback. The key focus for Europe this week is the ECB meeting on Thursday. Investors are waiting for more information on the government bond-buying program and also whether the Greek government bonds will be accepted as collateral for direct funding.
The Australian dollar dropped early on Monday to $0.77652 after the PBOC (People’s Bank of China) cut its benchmark lending and deposit rates on Saturday pointing at China’s slower growth. The cut was announced a day before a survey showed a contraction in its factory sector. The Reserve Bank of Australia is due to hold its March policy meeting on Tuesday, and the Australian GDP data is expected on Wednesday at 00:30 GMT.
The US market was keeping a low profile last week which may continue into this week as everyone awaits the Non-farm Payrolls report on Friday. Against the euro, the US dollar is continuing its eight-month winning streak. Gold, which ended February with the biggest monthly loss in the past six months, managed to rebound after the mixed US data sparked expectations for a rate increase during 2015.