The U.S. Dollar is trading in mostly familiar ranges as the air is calmer for markets after the extension on a tariff negotiations deadline giving reprieve to investors and traders
Overview
Fortunately, higher costs to trade have not been implemented, which was causing nervousness for all market classes as central bankers and businesses have to worry about inflationary pressures. With growth figures signaling a slowdown in domestic activity, the relief has been welcome news for futures contracts, establishing a better mood for this trading session. Without much in terms of major data, we will be looking for any developments in regard to concessions and deals that can avoid further uncertainty.
As far as confidence goes, the NFIB Small Business Optimism Survey for June came in just as expected, which was slightly lower than the previous reading. Most business decision makers highlight the difficulty in making long-term plans but have survived jitters over the supply-chain dynamics lately. Tomorrow, we will get a look at the insights from FOMC officials via Fed Minutes at 2PM. It will be very important to see how Consumer Price Index still rises slightly when it is released Thursday morning.
What to Watch This Week…
- FOMC Minutes 2PM Wednesday
- CPI 8:30AM Thursday
- Monex USA Online is always open
The complete Economic Calendar can be found here.
GBP ⇓
The British Pound is down just a bit against the Buck, getting away from its best levels since 2021. Recent data releases have shown better-than-expected growth numbers with Gross Domestic Product expanding by 0.7% in Q1. We will get more details regarding May and the pace for the past three months on Friday. With figures indicating better progress than economists had foreseen, the Bank of England is likely not going to be cutting interest rates anytime soon, which for now is a source of buoyancy for “cable.”
MXN ⇓
The Mexican Peso is trending in tight ranges following some wild swings as the potential for higher tariffs hit markets. The reprieve from high volatility is good ahead of a busy schedule of inflationary gauges in the next two days. We shall get details on weekly as well as monthly Consumer Price Index numbers for June. Talks between both U.S. and Mexico’s leadership are reported to have eased tensions regarding trade concerns.
