The U.S. Dollar is trading in steady ranges across the board with the exception of Mexican Peso, which has dwindled by almost 1.0%.
Overview
This week will have a focus on European sentiment as we get ready for the European Central Bank policy announcement on Thursday. While today the news are mostly breaking down the earnings for major companies, we will keep eyes on the bigger picture looking at domestic Retail Sales and Industrial Production out on Thursday. Overall, the U.S. economy is looking safer than the globe, which is keeping gains for the Buck experienced thus far in October.
We will hear from some voices regarding the Fed’s mentality as Austan Goolsbee speaks on Thursday and Christopher Waller as well as Neel Kashkari give their thoughts on Fed policy on Friday. After rounds of stimulus marking Chinese economic headlines in recent weeks, we will see the release of Q3 Gross Domestic Product figures Friday also. The situation in the Middle East remain precarious, but there were hints this morning of parties trying to deescalate tensions and discuss a possible end to violence.
What to Watch This Week…
- ECB Meeting on Thursday
- Fed Speakers, Friday
- Monex USA Online is always open
JPY ⇑
The Japanese Yen improved this morning after comments suggesting the Bank of Japan may be ready to hike interest rates further. Deputy BOJ Governor Ryozo Himino said it is possible for BOJ officials to feel it is appropriate to raise interest rates if the economy demonstrates ongoing improvement. While the economy is coping with contractions in some sectors, a push for more defense spending and closer ties with U.S. interests may bode well for Japan going forward.
MXN ⇓
The Mexican Peso declined in value as oil prices continue to slide. The conflict in the Middle East is causing all kinds of turbulence for commodity traders as well as commercial shippers who must adjust to live events affecting the safety of merchandise. The Buck is not necessarily gaining as a safe haven at the moment, but currencies tied to metals and other materials are suffering with the MSCI Emerging Market Currency Index down 1.2% thus far in the month.
