The U.S. Dollar is trading in unfavorable ranges and overall weakest level since the end of last month to start a week that will feature a U.S. holiday on Tuesday.
Overview
Over the weekend, attention was given to any developments out of Washington that would signal willingness to re-open the federal government. Stocks and futures globally started ticking up as it was reported that Senators had made a breakthrough towards a deal between lawmakers that would put the shutdown behind. While there is no clear timeline for when it will end, the air in the U.S. capital is optimistic and translating into early risk-taking before markets go home for the Veteran Day holiday tomorrow.
As headlines focus on the positive effects from getting things going like payrolls for projects and benefits for those in need, we will monitor how soon we can look at September as well as October economic indicators that can give us better guidance on what is happening and where we may go once the data is established. This week was supposed to have plenty of inflation gauges, so anything on Consumer Price Index or Suppliers will be welcome as hopefully things normalize. As mentioned above, MonexUSA offices are closed on Tuesday 11th to commemorate Veterans Day, returning on Wednesday.
What to Watch This Week…
- Monex USA Online is always open
EUR ⇑
The Euro is slightly up against the Buck as the positivity behind the chances of re-opening the U.S. government are uplifting almost every currency pair. While every market class from Gold to oil and even Bitcoin are rising, the Stoxx Euro 600 Index is on track for its biggest gain since June. Throughout the week we will get expectations surveys, September’s Industrial Production, and close out n Friday with the second reading of Q3 Gross Domestic Product.
JPY ⇓
The Japanese Yen is the only major peer losing ground to the Buck, with the typical safe-haven asset falling as others take advantage of the optimism gripping markets. There is confusion about the direction of the currency’s value since the pair typically rises after “hawkish” commentary from the Bank of Japan. A voting member said it was getting for the key interest rate to be hiked, citing the need to control inflation. Ever since the change in leadership, there seems to be a lack of consensus about how the country’s finances should be handled with spending plans running counter to a belief in being cautious and not put the account surplus at peril.
