The U.S. Dollar is trading in mostly flat ranges with markets stalling after further talk of potential tariffs and disappointment over the attempt at forging a ceasefire to the Ukraine-Russia war.
Overview
In the absence of major data points this week, headlines have been dictating the mood across markets and equities hit the brakes after talks of a plan towards peace did not include representatives from neither Ukraine nor the European Union. Saudi Arabian leadership wanted to host all parties involved as it is playing a role as mediator. The enthusiasm behind some agreement developing soon has certainly faded from what it was over the long weekend.
Investors and traders are also looking for details on any more tariffs to come in April that could widen the trade war by including 25.0% tariffs to larger items, semiconductors as well as medicine. The Euro Stoxx 600 Index was afflicted the most by dropping over half a percent. Later today, we will get a chance to read the Minutes from the Fed’s last meeting and look forward to Purchasing Managers Index figures along with the University of Michigan Consumer Sentiment out on Friday.
What to Watch This Week…
- Fed Minutes today 2PM
- Monex USA Online is always open
Complete Economic Calendar can be found here.
EUR ⇓
The Euro’s progress has been halted as the markets hopes for a peace deal between Ukraine and Russia is looking more distant than it did on Monday. Disagreements over how to even conduct any talks has already caused friction with EU officials and Ukrainian leaders being excluded from talks on Tuesday. The situation has not looked ideal in the eyes of markets which are eager to see an end to the armed conflict. Europeans are also on edge about German elections on Sunday. There is cause for belief behind the Euro’s prospects for appreciation as many economists predict a need to accelerate Defense spending while European Central Bank official Isabel Schnabel explained that the ECB may need to pause or end its rate-cuts mentality to counter worrisome stubborn inflationary pressures. Last week, natural gas prices rose to their highest in two years.
MXN ⇓
The Mexican Peso was one of the only significant movers to begin the day, falling by close to half a percent in value following discussion by the U.S. President that tariffs could affect cars and pharmaceuticals, key exports that cross the southern border daily. Nevertheless, there were some silver linings in the comments when it was mentioned that companies will be given time to also bring factories back. We shall see if an inflation report out by 1:30PM from Banxico makes the needle move any wilder.
