The U.S. Dollar is trading in mixed ranges without much in terms of wild moves as markets react to overnight news of progress towards a ceasefire in the Israel-Hamas conflict.
Overview
Other than excitement around A.I. and everything it involves; markets are a bit revived as the progress towards peace in the Middle East gives a positive reason to have more confidence in the future. Although there are concerns about the fundamentals, these have not prevented stocks from reaching record highs. Nevertheless, some headlines are pointing at growing doubts about the real impact that A.I. can have as well as indicating that some policymakers are seeing warning signs when it comes to weakening labor.
Although the latest official data has not been released, statements from Fed officials are demonstrating a bit of uncertainty about the economic situation. Federal Reserve Bank of New York President John Williams explained that in his view, labor is struggling too much to not act on it and is supportive of additional interest-rate slashes down the line. Thus far, the Buck has not lost ground and is trading near its best levels overall since the end of July. Tomorrow, we end the week with the University of Michigan’s Consumer Sentiment survey.
What to Watch This Week…
- Compliance Webinar – October 23rd @ 4pm EST – Save your seat
- Monex USA Online is always open
EUR ⇓
The Euro’s value is dwindling as European surveys have revealed less optimism than expected. A measure of fear amongst traders sees a bearish market for the shared currency with growing worries over the situation in France and the lack of economic progress throughout the year. It was the worst result seen since July. While the Euro-zone struggles, investors are starting to get away from holding Euros and diverting their investments, with growth in Emerging-Markets.
MXN ⇑
The Mexican Peso is at the moment, the only exception to the Dollar’s improvement against its peers as inflationary data keeps Peso buoyant. Consumer Price Index figures showed that in September prices kept rising as expected. However, the yearly average eased a bit after bi-weekly measures of inflation showed a decline in pace. Banxico seems committed as a centra bank to maintain an accommodative financial environment while it looks like inflationary pressures are slightly fading. It is not a wild day for moves, but MXN seems the only resilient pair out there while all others fall.
