The U.S. Dollar is gaining against it G10 peers this morning ahead of speeches from several Fed members later today, starting with Fed Governor Christopher Waller at 8:15am
The U.S. Dollar is gaining against it G10 peers this morning ahead of speeches from several Fed members later today, starting with Fed Governor Christopher Waller at 8:15am, who it is rumored will be interviewed by President Trump for the Fed chair position despite Hasset and Warsh being considered early favorites. We’ll also be getting crude oil inventories at 10:30am, with oil receiving a more than 2% boost this morning as a result of Trump’s blockade on Venezuela.
The Dollar is positioned to grind higher into tomorrow, which will be a much more eventful day for data with the release of U.S. CPI figures and interest rate decisions from the central banks of the European Union, United Kingdom, Norway, and Sweden. The U.S. CPI print is going to be a key figure to watch, as yesterday’s unemployment release confirmed existing fears surrounding a potentially softer labor market, with Traders beginning to price in additional easing in the first half of 2026 as a result.
What to Watch This Week…
- ECB, BOE, and Banxico Meetings on Thursday
- BOJ Meeting on Friday
- Monex USA Online is always open
JPY ⇓
The Japanese Yen is down against the Buck this morning as Traders prepare for the Bank of Japan’s meeting later this week, where they are expected to hike interest rates by 25bps to the highest levels since 1995. Data released overnight showed that Japan shifted to a surplus trade balance in November, and machinery orders rose solidly in October, so losses this morning are largely the result of USD strength.
GBP ⇓
The British Pound is the biggest loser versus the Dollar this morning following the release of declining consumer price numbers, thereby pulling down the year-over-year figure significantly, and pessimistic manufacturing expectations. The Bank of England will meet tomorrow, where they are expected to cut interest rates by 25 bps.
