The U.S Dollar is trading in mixed and tight ranges following a week of roller-coaster moves that ultimately left it weaker following chaos in the banking world.
Overview
As things settle down and the U.S. government looks to support more bank deposits, equity and risk markets are taking off with the hope that this will be a temporary blip and not a sign of recessionary times to come. An expansion of the emergency lending facility and approval of Silicon Valley Bank Group being purchased are signs that this could be a less problematic week.Data will be coming in heavily starting tomorrow with Retail Sales, the Personal Consumption Expenditures Deflator, Gross Domestic Product, and Consumer Confidence all registering readings. Fed speakers will also be speaking at various times throughout the week while Treasury Secretary Janet Yellen speaks at an event Thursday.
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 managed to climb by 1.3% last week and could be up for further gains following hawkish commentary from financial heads. European Central Bank Executive Board member Isabel Schnabel called for further hikes into the future than the market has priced in. As the ECB cohort follows its mandate, we shall see what if anything can prevent the Euro from rising as it merits credit after the continent survived the worst fears of an energy crisis in the winter. The ugly scenarios of rationing energy and lacking fuel did not materialize.
GBP ⇑
Sterling is holding on to its half-percent bump from last week. Data is the name of the game this week as a plethora of numbers make their way to assess the first quarter of the year. With support and probes coming when it comes to banks, London is looking to stay robust as a financial center and it is being aided by the negative spotlight on Switzerland. Management of major assets will be scrutinized more than ever moving forward and the “too-big-to-fail too-big-to-save” dilemma will haunt headlines and analyses for years to come. The financial hub will be tested.
