Sterling Dollar remains on the Defensive

This morning, the anti-risk Japanese yen moved higher as shares on the Nikkei 225 moved lower yesterday. This morning Japanese finance market were closed for a holiday. The Japanese yen is moving higher thanks to comments from Bank of Japan (BOJ) Governor Kuroda which he stated the BOJ would delay hitting its inflation target until 2018. These comments are igniting further skepticism over the effectiveness with their current monetary policy and quantitative easing (QE) program.

The Canadian Dollar saw a corrective bounce higher after Friday’s broad selloff. The Loonie fell against most of its major Forex trading partners except the Sterling Dollar. The British Pound saw a flash crash (also called a distorted price action). The Canadian Dollar is tracking the price of crude lower. Russia had signaled it is not going to reach a deal with OPEC to cap output at the meeting in Istanbul this coming week.

Sterling Dollar Remains under Pressure

The British Pound, also known as the Sterling, remained under pressure during Asian trading hours. The GBP should face a pretty volatile week as the Prime Minister of the United Kingdom, Theresa May head to Denmark. She will be talking to Prime Ministers Rasmussen and Rutte ahead of the European Union (EU) summit this month. There is a lot of fiery rhetoric out of the United Kingdom and Europe and this could explode again as the week progresses. The UK will be enacting Article 50 procedures by March 2017. This will begin the final divorce from the Eurozone and could take up to two years to complete.

Looking at today’s economic calendar, it is rather quiet for both the European and United States trading hours. This will leave traders and the financial markets a chance to digest recent price action. There is not a lot of headline economic calendar risk this week.