Foreign exchange market. European session: the euro traded lower against the U.S. dollar after comments by the ECB President Mario Draghi

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:00 United Kingdom Bank holiday

08:00 Germany IFO - Business Climate August 108.0 107.1 106.3

08:00 Germany IFO - Current Assessment August 112.9 111.1

08:00 Germany IFO - Expectations August 103.4 101.7

The U.S. dollar traded mixed to lower against the most major currencies ahead of the economic data from the U.S. Preliminary services purchasing managers' index is expected to decline to 59.2 in August from 60.8 in July.

New home sales in the U.S. are expected to rise to 426,000 units in July from 406,000 units in June.

The greenback remained supported by Friday's comments by Federal Reserve Chair Janet Yellen in Jackson Hole. Janet Yellen said that the U.S. labour market is not yet fully recovered. But she added that the U.S. labour market was improving. The Fed Chair Yellen offered no signal when the Fed will start to raise its interest rate.

Investors speculate that the Fed may hike its interest rate sooner than expected.

The euro traded lower against the U.S. dollar after comments by the ECB President Mario Draghi. The European Central Bank (ECB) President Mario Draghi said in Jackson Hole on Friday the ECB could add new stimulus measures should inflation decline further. He also said inflation expectations were showing a significant fall.

The weaker-than-expected economic data from Germany also weighed on the euro. Ifo released its indices for Germany. The Ifo Business Climate Index declined to 106.3 in August from 108.0 in July, missing expectations for a drop to 107.1.

The Ifo Current Assessment decreased to 111.1 in August from 112.9 in July.

The Ifo Expectations dropped to 101.7 in August from 103.4 in July.

The British pound traded higher against the U.S. dollar in the absence of any major economic reports in the UK. Markets in the UK are closed for a public holiday.

EUR/USD: the currency pair fell to $1.3183

GBP/USD: the currency pair rose to $1.6597

USD/JPY: the currency pair declined to Y103.85

The most important news that are expected (GMT0):

13:00 Belgium Business Climate August -7.5 -8.3

13:45 U.S. Services PMI (Preliminary) August 60.8 59.2

14:00 U.S. New Home Sales July 406 426

22:45 New Zealand Trade Balance, mln July 247 -475