The U.S. Dollar is trading in mostly weak ranges as equity markets take a reprieve from sinking yesterday with fears surrounding the outlook for the American economy
Overview
As tariffs have plagued the narrative, traders and investors are confused about plans for trade barriers, their reversal and the goals to be achieved. Since stocks are on a downward spiral, U.S. President Donald Trump has agreed to meet with top CEOs and other major business executives and hold a discussion, surely with media attention.
Markets are looking to make a recovery after the Nasdaq 100 Index had its weakest performance since 2022, correlating a bit with the bad fortunes for the dollar. There are plenty of headlines wondering about the end of a positive trend in markets as American policies start being scrutinized. If any recessionary pressures were to come domestically, it would certainly add to Fed chances for multiples interest rate cuts for what is left of 2025. They will meet next week on March 19th. We will have more data to chew in the next couple of days, but for today we will get a look at January JOLTS Job Openings.
What to Watch This Week…
- JOLTS Job Openings at 10AM
- Monex USA Online is always open
Complete Economic Calendar can be found here.
EUR ⇑
The Euro reached a fresh new high this morning, its strongest since November 5th as optimism continues to carry the shared currency with promises of major spending. The German plan to take away deficit controls has been a welcome step for the Euro-zone which is looking to add to expenditures in an unprecedented way and build a defense infrastructure. While there were some hiccups with the Greens in Germany refusing to change constitutional obligations, a meeting between Friedrich Merz, who recently won the election, and the party leadership seems to have eased tensions and brought again a path towards consensus.
GBP ⇑
The Pound has been jumping along with the Euro and reaching its best level against the Buck since early November. Without much in terms of data, Sterling along with other majors is having a moment as the U.S. economy looks vulnerable after sustaining a long period of growth. That could change on Friday as we get a plethora of data points in Gross domestic Product, Manufacturing Production, as well as Industrial Production all for January and Q4.
