An attempt to gain a foothold in a lower trading range is visible, which indicates the willingness of market participants to buy more US dollars. At the same time, the positive statistics of the Eurozone failed to strengthen the euro in the framework of speculative trading.
As well as an additional driver in favor of the strengthening of the US dollar was the publication of the business activity index (PMI) in the US services sector for September. Note that the experts' forecast is slightly lower than the previous value, and the current value turned out to be positive. At the same time, the ISM Purchasing Managers index for the US non-manufacturing sector was published for the same month. This time, the actual value came out better than the previous and forecast. The value for August has not been revised.
In the end, this had a positive impact on trading in the US dollar, as the market received another argument in favor of curtailing the soft monetary policy of the United States. And do not forget about the mood of the market. There is a clear priority in favor of strengthening the US dollar in the medium term. The downward trend of the euro/dollar exchange rate psychologically pushes market participants to sell euros more.
On Wednesday, the foreign exchange market will show an increase in trading activity. The European session will be opened by the publication of the volume of production orders in Germany for August. Later, the volume of retail sales of the Eurozone for the same month will be published.
These news have an increased degree of importance, since there was optimism at the beginning of the week against the background of the Eurogroup meeting. The trading history shows that the single European currency will be volatile.
Before the American session, changes in the number of people employed outside agriculture from the US ADP for September will be released. Good data will only strengthen the position of the US dollar against other world currencies.