The U.S. Dollar is closing out the week in mixed ranges but without a ton of movement after a week mostly defined by its return to risk appetite following a relief across markets over the U.S. debt-ceiling deal.
Overview
Data this week pointed at inflation still plaguing most of the world and fears that certain items, such as oil, may only make price growth more acute in the next few months after Saudi production cuts.
As June progresses, we will get more central bank action as well as commentary that will be scrutinized plenty as outlooks are revised for what is to come in the second half of the year. Meanwhile, technology sector prosperity after Netflix cut off shared passwords with friends may keep risk-aversion away, only further sinking the buck the way it did on Thursday. Be ready for a more concrete direction and mood once next week pans out.
What to Watch Today…
- No major economic events are scheduled for today
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EUR ⇑
The Euro had an up-and-down week after the release of disappointing Gross Domestic Product data pointing at major struggles in the pursuit of economic growth post-pandemic and throughout the war. A defiant Russia refuses to consider various proposals from different world leaders who are seeking at least a cease-fire for some talks and negotiations. The political reality of Russia forces Putin to remain aggressive and without signs that he will relent any time soon. The Euro-zone will find a way to return to growth, especially if spending by the German government aids in large projects and helps lift up the rest of the continent’s overall productivity and consumption. We remain bullish and feel there is only improvement to be had.
NZD ⇑
The “Kiwi” has been the biggest mover today, climbing by almost half a percent and reaching its strongest value in 3 weeks. China’s Consumer Price Index for May expanded as expected, at least a sign that demand and inflation are making some gains and thus aiding the tender of trading partners such as New Zealand. Additionally, currently, low levels of volatility are also boosting NZD along with others. As the economy remains steady, expect the Reserve Bank of New Zealand to consider hiking interest rates even more at their July 11th meeting.
