The U.S. Dollar is currently trading in tight ranges as ongoing developments unfold live at the time of writing, including the European Central Bank press conference following its policy meeting.
Overview
For the most part, the buck keeps swinging back and forth between gains and losses, all based on the uncertainty surrounding the remainder of the year. The ongoing war means that there will be more military spending at a time when there are supply-chain woes.Additionally, the International Monetary Fund and other economic institutions worry that COVID issues are being deferred while they expect further downside. Nevertheless, equities have climbed because of belief that inflationary pressures may be peaking and Shanghai decided to ease its lockdown after two weeks of no mobility allowed in the city. Data-wise, Retail Sales for March advanced close to expectation, but nothing significantly great as the prior month’s revised figure remained a contraction when excluding auto and energy prices. Jobless Claims came in higher than expected while Continuing claims remained about the same. Expect volatility to increase as markets react to what has been a dovish ECB presser.
What to Watch Today…
- No major economic events scheduled for today
Back to Back TOP Wins | #1 G10 Forecaster for Q1 2022
Bloomberg ranks Monex USA (formerly Tempus) as the top G10 Forecaster, NZD, CHF, AUD, MXN, and GBP! Learn More
EUR
The Euro is floundering at the moment as ECB President Christine Lagarde explains how difficult it is to predict growth levels down the line as the war has created insecurity around access to resources as well as services.
More importantly to the value of the shared currency, bets on ECB hikes down the line are falling as officials continue to look for an end to their bond-buying, but it has been delayed until June. Expect the pessimism to hurt Euro short-term as it reaches a fresh new low for the year and the weakest for the buck since May 2020.
MXN
The Mexican Peso reached its strongest level over the greenback since June 2021 as the wild moves continue. Commodity prices surging and oil forecasts all over the place have given the MXN benefit as well as the likelihood of ongoing rate hikes as it tries to keep up with world-record inflation in food prices. We stay put on our Peso forecasts that remain accurate.
Ready to spin the currency market moves in your favor?
DISCOVER HOW WE CAN HELP YOU SEND or RECEIVE PAYMENTS
