The U.S. Dollar is trading in tight ranges without much in the way of data points as market participants look forward to FOMC Minutes released later at 2PM.
Overview
Investors will look for any signs that indeed Fed officials are leaning towards being “dovish” for the remainder of the year as they will look for highlights regarding labor sector and overall growth concerns. Meanwhile, inflation will remain important, but the bigger issue is how long can the economy experience “stagflation?” Any sign that markets will get some stimulus down the line could play well for equities after four consecutive days of losses for Wall Street.
Tomorrow we will get to look at plenty of figures from August including Purchasing Managers Index surveys, Existing Home Sales, as well as regional gauges of manufacturing. Perhaps these can move the needle some in what has been a week characterized thus far by its lack of volatility. We shall see if ahead of next week there are any wild moves, but at the moment only few currencies are moving much at all. Expect headlines over geopolitical developments to produce some reaction if anything at all materializes from talks as well as meetings between the White House and European leaders.
What to Watch This Week…
- FOMC Minutes 2PM
- PMIs on Thursday 9:45AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro climbed slightly following the release of inflation data in the form of Consumer Price Index. As expected, July’s consumer prices climbed by 2.0% and the annual average stuck to 2.3%. with inflation controlled as European Central members desire, the focus for the euro-zone and the EU will be to find growth which can be more easily achieved if there is a ceasefire, peace or any kind of deal that normalizes relations with Russia again. Energy has been a major focus in talks as the Russian economy has suffered under sanctions and restrictions and is looking to be given access to markets again. We shall see if momentum speeds up for the shared currency as there is potential for a resolution to aid sentiment and confidence.
NZD ⇓
The New Zealand dollar has dropped by 1.0% in value falling to its weakest point since April. The only big move this morning came as a result of a “dovish” Reserve Bank of New Zealand policy announcement that brought interest rates down by 25 basis points. Officials did not hide their interest in promoting looser policy in future meetings and explained that a flagging economy may require it. New Zealand’s economy registered a contraction per Q1 GDP.
