The U.S. Dollar is trading in slightly better ranges against a few major counterparts while maintaining largely familiar ranges against a multitude of commodity-based currencies.
Overview
There are expectations of a depreciating Mexican Peso as we get a decision from the central bank at 2 PM in which they are expected to cut interest rates. They have room at 7.5% and hope to aid the economy that way.
On the other hand, the Riksbank, Sweden’s central monetary authority, decided to change a 5-year stay in negative territory by bumping the interest from (-0.25%) to 0.0%. The mixed action will likely create volatility into 2020 as central banks take different approaches with whatever tools they have available. The currency initially improved, but it is currently losing the ground gained as markets react.
We shall see if markets remain mostly quiet as they eagerly wait for the Gross Domestic Product figures tomorrow, the final revision of Q3 growth. The pace is estimated at 2.1% while Personal Consumption, Income, and Personal Consumption Expenditures also are forecast to be positive for the month of November.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
EUR
The Euro is resilient at the moment after a week and a half of mixed economic indicators showing that larger member nations are not improving their manufacturing situation yet seeing some bumps in services. German confidence seems to be on its way up, but contraction surrounding its industrial production is still worrisome. Any chances of recovery in Q1 or as we digest 2019’s Q4 figures will help the shared currency tremendously. For now, Europe will be basically on holiday until we get major data in January.
GBP
The Pound continues to look fragile as Brexit uncertainty keeps clouding the economic outlook for the United Kingdom and political disillusion seems to be dominating headlines. Changes to previously mandated parliamentary laws are making traders wonder if there will be other problems in bringing Brexit to a smooth endgame.
Earlier today, the Bank of England did not produce anything significant except for showing that two members of the Monetary Policy Committee saw the need to cut rates. Since markets expected more members to call for expansionary policy, Sterling stayed away from losing any more value. We think these ranges will stay but weakening mode after the election could play into January.
