Forex: Monday’s review

Yesterday euro retreated from highs against the dollar amid weak trading in the absence of any publication statisticsi because bank holidays in Europe and the United States.

Earlier, investor optimism was associated with the news that, according to opinion polls, the majority of the population of Greece supports the center-right party "New Democracy", which stands for the continuation of the country's obligations to international lenders and observance of austerity measures. According to Greek analytical agency Kapa Research SA, for the party "New Democracy" may vote by 5.7% more voters than in the radical left SYRIZA block, which calls for the immediate rejection of the agreements with creditors. In addition, investors pleased with reports that the National Development and Reform Commission of China approved three major construction project, which is an implementation of government's intention to support the growth of Chinese economy.

The British pound traded cautiously against the dollar due to the fact that the inflation report, indicating a greater propensity for soft policies than expected, low inflation and low retail sales data suggest that the obstacles to further monetary easing in the UK may be lower than previously thought.