The U.S. Dollar is trying to close the week around 1.0% stronger overall, per the Bloomberg Dollar Spot Index, after a week marked by geopolitical breakthroughs and mixed economic sentiment.
Overview
Without any official data from the government, markets have tried to assess via private gauges how labor and inflation are performing. In the latest statements from the Bureau of Labor Statistics, they are hoping to be able to present inflationary data by end of the month. Meanwhile, global markets are wondering about the effects to be had from progress in ending armed conflict in the Middle East as well as the political turbulence across both oceans. (Audio Note APM)
Japan is feeling the effects of a change of the guard with a Prime Minister promising to be an antidote to austerity while looking to expand spending, contrary to what anyone had modeled or predicted for the Pacific Rim giant. Over in Europe, the French government is in trouble as it looks for a way to get a budget deal in a broken parliament. The lack of positive headlines from elsewhere has benefited a Buck recovery. On Monday, MonexUSA offices will be closed in observance of Columbus Day.
What to Watch This Week…
- Compliance Webinar – October 23rd @ 4pm EST – Save your seat
- Monex USA Online is always open
EUR
The Euro is flat after losing 1.2% of its value thus far in a week marked by trouble and uncertainty. Although markets are overshadowed by technology as well as a resolution to the U.S. government shutdown, France has also played a part in deteriorating the economic picture of the Euro-zone as well as affecting what had been a streak of record gains for European stock exchanges. The Stoxx 600 Index has dropped 1.0% thus far into October. The domestic policies of the European Union’s second largest economy will likely be a catalyst for downward movement in the shared currency until solved for the remainder of the year.
