The U.S. Dollar remained relatively stable today, with the Bloomberg Dollar Spot Index showing little change
Overview
This stability comes amid mixed signals from the market, as investors digested earnings reports from major tech companies like Microsoft Corp. and Meta Inc. Both companies saw their shares drop by as much as 4.0% in pre-market trading, contributing significantly to the losses in Nasdaq futures.
Despite the disappointing earnings, the Buck’s strength was underpinned by robust U.S. economic growth data released yesterday, which prompted traders to trim bets on interest-rate cuts. Additionally, the two-year Treasury yield hovered around a three-month high, reflecting the market’s cautious sentiment.
Looking ahead, several key items will close out the week. Investors and traders will be closely monitoring the earnings reports from Amazon and Apple Inc., as well as economic data on Non-Farm Payrolls, prices, personal spending, and unemployment claims. These indicators shall provide further insights into the Federal Reserve’s policy path, especially in light of the recent robust economic growth numbers. Middle East troubles and the upcoming U.S. Presidential election are also expected to contribute to market volatility.
What to Watch This Week…
- US Nonfarm Payrolls, Friday 8:30AM
- Monex USA Online is always open
MXN ⇑
The Mexican Peso has bounced back a bit after more support from positive reaction to solid Q3 economic growth figures. While the threat of tariffs and disturbance to trade with the U.S. have heavily affected MXN value, it is important to recall that the country’s fundamentals are a beacon of advancement, not common in other regions of the globe. As we come to the U.S, election, there may be more surprises.
JPY ⇑
The Japanese Yen recovered by half a percent this morning following the Bank of Japan’s policy announcement. While the decision was to hold rates where they are, at 0.25%, the meeting did not cause any losses. Officials did discuss the potential for economic instability if the political situation post-election does not improve. The ruling coalition losing seats and its majority for the first time since 2009 was the result of snap elections that the Prime Minister hope would give him an upper hand. Expect more volatility from domestic concerns when it comes to Yen.
