Overview

The US dollar was trading little changed against major currencies ahead of a busy data calendar this week which is likely to determine the currency's short-term direction.

This week there are a number of key data releases in the US including March existing homes sales which are expected to show a modest fall on Tuesday, together with the Conference Board April consumer confidence index which is also expected to show a small deterioration.

On Wednesday US March new homes sales and durable goods orders data are released. On Friday the initial estimate of first quarter to March gross domestic product (GDP) growth will be released and is forecast to show annualized growth of 2.0 pct, down from the December quarter's 2.5 pct year-on-year rise.

US readings on housing activity and GDP are not expected to provide the US dollar with much comfort.  The market is continuing to price in US interest rate cuts later in the year even though Fed governor Frederic Mishkin on Friday expressed concerned about higher inflation.

Data for today

For today:

Watch the EUR/USD as it pullbacks it needs to hold 1.3560, but we could see a deeper correction as traders close out longs ahead of this week's US data.

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