The U.S. Dollar is trading in mostly flat ranges across the board as European nations, Mexico and other countries shut down trading activity in observance of Good Friday.
Stock markets are also closed in the U.S. although overnight activity in Asia indicated a growing sense of optimism with reports that more traffic is going to be allowed through the Strait of Hormuz. A deal for monitoring ships between Iran and Oman have opened the possibility of alleviating the energy crisis that has developed in recent weeks. Subsequently, exchanges flourished in the Pacific Rim with the MSCI Asia-Pacific Index gaining 0.7%, Japan’s Nikkei 225 Stock Average jumping 1.3%, and Korea’s Kospi Index surging 2.7%. Most Asian currencies are closing the week with a gain over the Buck averaging half a percent.
Following a week of quickly changing narratives about the conflict in the Middle East that had market sentiment on a roller-coaster ride, the Dollar is ultimately down 0.5%, per the Bloomberg Dollar Spot Index. Overshadowed by the ongoing situation in Iran, statistics are not making much of an impact on FX moves, but there is evidence that growth is slow and that inflation keeps creeping up.
Labor figures today showed that March Non-Farm Payrolls grew way more than anticipated coming in at 178K vs. 65K estimate. It is important though to look at the revision for February figures which originally came in contractionary territory at (-92K) and now it is up to (-133K). At the time of publishing, Dollar improved, but it seemed limited as low volume expected in midst of absent desks.
What to Watch This Week…
- Monex USA Online is always open
MXN ⇑
The Mexican Peso climbed by 1.6% this week, overcoming much of the downfall it experienced against the U.S. Dollar following a change towards loose monetary policy by Banxico. Although central bank officials cut interest rates, the wild back and forth about Iran has tilted toward hopefulness that some resolution can come about. Investment and inflation gauges will be released throughout next week. While Mexico is off for today, normal business will return Monday, but Europe’s activity will still be missing as they will not get back from Easter holiday until Tuesday
