A dearth of economic data releases lead to a subdued start to the trading week on global markets. The German Ifo Business Climate report was weaker than expected and just confirmed the dire straits that the German economy is in. The Dallas Fed Manufacturing Index was slightly better than expected, but remained in deep negative territory. Markets are being heavily influenced by Central Bank monetary policy, which is in turn defined by inflation, thus higher rates are driving recessionary pressures across Europe, Australia, NZ and the USA. Therefore markets keenly await European and US inflation numbers , due out later in the week. The US Dollar pushed upwards, with the EUR falling below 1.0900, while the GBP dipped below 1.2700.
Commodity currencies are suffering the flagging demand from recessionary pressures and a rising reserve. The AUD crashed to 0.6670, while the NZD drifted to 0.6140. There are no major local data releases, so international market data, will drive the local currencies.