The U.S. Dollar trades in stronger ranges across the board as markets handle a few headaches.
Overview
The U.S. Dollar trades in stronger ranges across the board as markets handle a few headaches. First Republic Bank is back on the headlines after a 20.0% pre-market loss in value along with announcements that the bank will cut about 25.0% of its staff. The negative mood in equities is being felt as there is also anxiety over possible disappointment in tech earnings. On the currency side, the buck is simply trying to make up some of its losses, and the sour and relative quietness of markets is fueling it for now.
Geopolitically, the potential for peace is looking low, with France angry at China over some remarks by a Chinese official who was part of an envoy to try putting together efforts to bring Ukraine and Russia to the table. French President Macron is hoping that he and China’s Xi Jinping can work towards an end to the armed conflict. The latest faux pauses delay a joined move. At the moment, with OPEC+ making decisions that affect current outlooks and political realignment, the buck can seem like a source of safety while the globe adjusts to supplying and fueling their economies in a world still plagued by high inflation.
What to Watch Today…
- No major economic events are scheduled for today
- Monex USA Online is always open
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EUR ⇓
The Euro is down regardless of positive economic data as well as increased chances for hawkish action by the European Central Bank in May. The German Institute for Economic Research’s Ifo Confidence came in better than expected, showing that the general mood has improved after the winter of concern. Energy supplies now well taken care of have made suppliers more confident overall, especially after the shock accompanied by the war last year. Meanwhile, various voices have expressed that a hike is certainly guaranteed for the May 4th ECB meeting, and chances of a 50-basis-point move have increased to 33.0%. The shared currency may swing upward again and soon.
GBD ⇓
Sterling is down by over half a percent this morning, already failing to sustain most of its gains from last week. The scandal over the resignation of Dominic Raab as Deputy Prime Minister is a stain on a mostly successful record for the Rishi Sunak administration. Globally, the U.K. has seemed turbulent as leadership questions have mired the country for seven years ever since Brexit completely changed the dynamics of the economy and security. Bullying or any other type of documented abuse is a major blow in any organization, but from top government officials, only foments doubt about the direction of all things. It could trigger stronger calls for a general election and a review of what is happening at 10 Downing
