Dollar Struggles, Mired Near Lows

At 4:00 AM May Eurozone Current Account Balance (exp –1.2 bln euros, prev –4.0 bln euros)
July Eurozone Service PMI (exp 58.0, prev 58.3)
July Eurozone Manufacturing PMI (exp 55.5, prev 55.6)
At 5:00 AM May Eurozone Industrial Orders m/m (exp 1.1%, prev –0.4%)
May Eurozone Industrial Orders y/y (exp 7.8%, prev 12.2%)
At 8:30 AM Canada May Retail Sales m/m (exp 0.5%, prev 0.4%)
Canada May Retail Sales ex-autos m/m (exp 0.6%, prev 0.0%)
At 10:00 AM US July Richmond Fed Survey (exp 5, prev 4)

The beleaguered dollar found no reprieve in the early Tokyo session, dropping to fresh 18-year lows versus the Aussie at 0.8847 and falling to a new 26-year low against the sterling at 2.0640. We continue to monitor the trade-weighted dollar index, which trades just above the key 80-level. Traders will closely assess this week’s US economic reports to discern the trend for the greenback over the coming months – with overwhelming sentiment biased toward further declines as a result of expectations for global interest rate differentials.

The economic calendar from the US for Tuesday is light, consisting of only the July Richmond Fed manufacturing survey – seen improving to 5, up from 4 in the previous month. Traders will also continue to analyze earnings releases and monitor US equity performance. There are also Fed officials scheduled to speak, including Mishkin and Poole.