The U.S. Dollar is trading in weaker ranges as the markets continue to weigh the effects of central bank policy on inflationary pressures.
Overview
The buck has erased some losses by yesterday afternoon following hawkish monetary policy commentary to be expected from committed Fed members. Additionally, there is an ongoing pain in treasury markets as expectations seem to be all over the place only guaranteeing higher costs for other assets and yields not seen since the 2008 crisis era.Most of the globe’s attention is focused on the U.K. which happens to be under the spotlight for all the wrong reasons. The Prime Minister’s quick run and eventful quitting have marked a period of political turbulence that has not been seen since the Brexit referendum in 2016. Conservative Tory members hope to keep power and exude stability somehow. Meanwhile, energy concerns will keep markets highly volatile while the buck loses some of its momentum.
What to Watch Today…
- No major economic events are scheduled for today
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EUR ⇑
The Euro has been climbing as quickly as its drive fades with ongoing worries about medium-term capabilities for energy supplies across industries. A current meeting will help determine just how much rationing EU members will attempt as well as how to control costs. With alternatives coming from various places, larger nations are hoping to cushion the blow from a freeze inflows from the Eastern front. We see room for growth but limited as long as global fears remain with obstacles left to conquer.
GBP ⇑
Sterling has continued to climb against the greenback as all eyes watch how Britain resolves its political troubles. Rishi Sunak, the former Chancellor of the Exchequer as well as his Prime Minister boss Boris Johnson are looking to be the next one in line for the main office in Downing. Rishi had momentum in his previous attempt and is ultimately considered the most qualified amongst his peers for the job following hi warnings about Truss.
Ultimately, the U.K. economy faces multiple challenges that will require a steady government and perhaps one that looks to work with the EU again to ease trade woes negatively impacting prospects for any growth.
