The setback for the US Dollar continues at the US Dollar index (DXY) closes with a second consecutive day in negative territory. The DXY is currently at 96.22 after last week suffering the worst weekly drop since last September.

The Japanese Yen continues to strengthen against a softer USD and the USDJPY has wiped out all of November’s move higher as USDJPY scrapes lows of 112.39 at the time of writing.

Softer US data and concerns over the global outlook (with US-China trade talks being the main culprit at least for the US) have raised questions over the Fed’s projected tightening and comments from some Fed officials have continued to fuel these doubts.

On the economic data front the RBA’s Lowe is expected to speak later this morning in Melbourne, and BoE’s Carney shall be testifying in London today. Later in the afternoon data for US Housing starts and Building Permits for the month of October will also be published for the US economy.

Later this week traders will closely follow the EZ PMIs amidst concerns that the EZ economy is slowing down. EURUSD is currently at 1.1455 not far off from 07th November highs were the currency pair’s rise found resistance around 1.15 levels.