US dollar edges up as Republicans poll rolls out in Iowa

The key state Iowa is set to have its GOP Caucus votes this Monday evening, with Trump expected to win. Despite continuing tensions in the Middle East and Asia, the US dollar is up 0.14%, trading at 102.580. This week’s reports on Michigan consumer sentiment and US retail sales have traders anticipating both releases.

As world leaders gather in Davos for the World Economic Forum, the US Dollar Index is trading in the mid-102 region. The dollar is trapped in a range as traders struggle to determine its next move. There are a lot of moving components at play, as US economic data begins to paint a very contradictory image with many data indicators showing decline yet the labour market is still quite tight.

In addition, there is the World Economic Forum in Davos, all the while the hot themes of Russia, Israel, Gaza, the Red Sea, Yemen, and Ukraine are still simmering in the background.

This week, Wednesday and Friday will be key dates for economic data, with Monday off for trading. The US trading day will move on very low volumes on Martin Luther King Day. Wednesday traders will prepare up for US retail sales and on Friday the University of Michigan will inform markets more on the Consumer Sentiment.