The U.S. Dollar is trading in better ranges this morning, erasing some of the losses from yesterday as thus far in the month it has experienced an overall 1.8% decline
Overview
Markets have certainly been seesawing a bit with uncertainty over longer-term items such as the possible implementation of tariffs and elections happening in Germany on Sunday.
This week has been marked by major geopolitical developments that have fomented doubt over future trade as well as foreign policy realignment. It has also witnessed a rally for Gold which is at an all-time high after reaching eight consecutive weeks of gains. This is a result of a need to hedge for a blurry outlook.
Data points have also been released with Purchasing Managers Indices in Europe and the U.K. coming in a little underwhelming. American PMIs will be out t 9:45AM. This will be followed by the University of Michigan Consumer Sentiment survey from February.
What to Watch This Week…
- Monex USA Online is always open
Complete Economic Calendar can be found here.
EUR ⇑
The Euro is now up by 1.2% for the month, being boosted lately by good fortunes in its equity markets. The Stoxx 600 Index is experiencing its ninth straight week of progress, fueled in part by investors faith in some resolution materializing in the Russia-Ukraine war. Stocks in Europe have attracted attention with the week through 2/19 seeing the most weekly inflows in 3 years. China’s push to help private technology industries have boosted those shares to their highest value since 2022. For now, the narrative is helping the shared currency.
MXN ⇓
The Mexican Peso has been subject to plenty of up-down action leaving it mostly flat for the week. Nevertheless, there are worrisome items such as confirmation this morning from the final reading of Q4 Gross Domestic Product numbers that there was indeed a contraction of (-0.6%) and decline in Economic Activity during the month of December of (-1.05) when just (-0.70%) was estimated. The resilience of Peso has been due to tariff talks initially causing concern but ultimately delays and reports of a warm relationship between the two North American presidents have countered the negativity.
