European currencies drop slowly against the dollar just before the meeting between the Prime Ministers of Luxembourg, Greece, Germany, and France, which will take place on Wednesday - Thursday.
The euro hit its highest since July 5 last Tuesday during the American session, boosted by an annual maximum of the Dow Jones. With little merit and amid weak dollar, the euro managed to get closer to 1.25, but was unable to overcome it.
The pound was also above the 1.58 area, and the short term trend does not seem to overcome it.
Today the attention should be paid to oil related currencies such as the Canadian dollar and the Mexican peso. Both of them are losing strength but not too steep as oil firm after reaching its highest since May 10, yielded $ 1.5 per barrel in a few hours. However, this drop seems to be a good correction after two successive upward movements of both of them. This correction could be extended during the American session, with USD / CAD reaching 0.9950, and USD / CAD approaching to 13.25, in both cases, first resistance of these junctions.
As for the other news, Japan's trade balance showed a deficit lower than expected in July. The yen barely moved in upward direction, but did not change its downward trend of recent days. Notably, the Bank of Japan did not take any action to weaken the yen. Given that, from April 2011, the trade balance shows severe deficits, the currency product is getting more expensive with every day. BOJ carried out short term intervention measures, and investors, in case of crisis, take refuge in assets such as the yen, as it made in due course to the Swiss franc, prompting an intervention in the exchange rate to 1.20 against the euro by the Swiss National Bank.
At 10:00 the United States will announce data on sales of existing homes, and at 10:30 will release information on oil inventories. 2:00 PM is the highlight of the day: the FOMC minutes. Officials will explain in detail why they refuse to implement a plan for economy stimulation, stock market investors are anxiously awaiting for this announcement. It is recalled that in the previous two meetings the markets were expecting such kind of measures, but the hopes were in vain and the stocks plummeted immediately. The main actions of Wall Street are benefited by mass of dollar liquidity with little precedent, then the peak was obtained in the evening but failed to fix it, closing the day with a loss of 0.52% of the Dow Jones.

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