The U.S. Dollar continued its good run as it is establishing itself as a major beneficiary of solid economic indicators and optimistic thinking that 2022 will be uplifting to the global economy.
Overview
The Chinese Yuan is also having a good moment out of the rosy mood, improving to its best level since 2018 as relations with the U.S. improve and they work on stabilizing trade. Around the world, energy costs continue to shoot up as European gas prices have climbed by 12.0% on delays in building a pipeline from Russia. This seems to also be helping the buck.We shall see if there are any surprises from the Senate Banking Committee as it has been reported that their decision on a Fed chairperson is imminent. Lael Brainard, Fed Governor since 2014, is in the running and her perceived dovishness sent long bond yields crashing earlier in the month. Retail Sales for October was higher than expected at 1.7% over the 1.0% estimated.
What to Watch Today…
- No major economic events scheduled for today
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EUR
The Euro slipped further to a 16-month low as Christine Lagarde continues to defend the European Central Bank’s loose monetary policy decision. In clear statements, the chairwoman explained “trimming financial facilities would do more harm than good.” With such a mindset, there is not much that can reverse the shared currency’s losses which only seem to be steepening as we type this.
GBP
Pound Sterling was looking toward gains earlier util a development this morning changed the course of all currencies to weaken against the buck. Good labor figures encouraged the mood for tapering and foreseeing an earlier interest rate hike than expected. Other problems are brewing in the U.K. which makes us have little faith in the currency, but earlier a statement from a Fed governor indicating a will to tighten more aggressively in the U.S. guaranteed the ongoing decline for major peers.
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