The U.S. Dollar is trending weaker to start the week following tension and anxiety over the weekend about the Mideast turmoil.
Overview
Markets are coping with a variety of items to worry about, none bigger than the chances of this development turning into yet another long-term war. Commodity prices are up as traders and investors wonder about oil and other supplies running into trouble as nations react and adjust. Over the weekend, U.S. President Joe Biden and other leaders seek to work together to contain the Israeli-Palestine situation, even involving back channels of communication with Iran.
Buck’s negativity can also be credited at the moment to efforts in Asia to counter the drag in economic growth. The People’s Bank of China (PBOC) decided to aid the economy with the largest medium-term liquidity injection since 2020. About $40.0 billion worth was fueled through a medium-term lending facility. Expect this week to be the opposite of Golden Week, with lots of focus on Chinese data to chew, along with the gathering of leaders for the Belt & Road Initiative Forum. Meanwhile, we will see Retail Sales figures along with Industrial Production on Tuesday for America.
What to Watch Today…
EUR ⇑
The Euro returned to green territory as global business copes with the troubles of the conflict developing and the dollar eased in momentum. In a week that will have a lot of insights coming from the Pacific Rim, we will monitor how leaders across the pond also handle issues emanating from a crisis that could exacerbate the arrival of refugees to Europe’s shores. There will not be a ton of data to watch out for except for inflation in the form of the September Consumer Price Index on Wednesday.
GBP ⇑
Sterling is also up over the buck, but without much in terms of indicators other than the middle of the week. Much like the Euro, Pound will be at the mercy of global talks on diplomacy and the human and financial costs that war efforts in The Levant will incur. We will get inflationary stats for both consumers and suppliers on Wednesday. All eyes this week will be on hope that the heated situation can be diminished, and the damage limited.
