The U.S. Dollar is being dragged down, already the weakest overall level since December 2023 per the Bloomberg Dollar Spot Index
Overview
Another eventful weekend is causing a strong reaction from traders and investors concerned about the Federal Reserve’s ability to maintain its independence down the line. Fed Chairman Jerome Powell made comments that caused the U.S. President to disagree with his stance and declare that it would be best if Powell left his position sooner rather than later, which he would actively pursue. While Powell says he will not quit, some damage has already been done t the Buck as worries pile up over the future of the U.S. economy as it faces the threat of “stagflation,” trade friction, and discord between government goals and Fed control.
As it has become common in recent days, Gold rose to a new record high as it plays a safe-haven role in the midst of mostly negative headlines. Meanwhile, oil prices continue to dwindle from belief there will be lower demand as the globe starts to struggle. Today’s activity will be driven by news items as there are no pieces of data to chew until really Wednesday when we analyze Purchasing Managers Index figures for April. Durable Goods Orders come Thursday while we get the University of Michigan Consumer Sentiment survey. FX may be wildly moving but liquidity will not be back to normal until tomorrow when our European, Canadian, and Oceanic friends are back at their desks from the Easter holiday.
What to Watch This Week…
- U.S. PMIs on Wednesday 9:45AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
MXN ⇑
The Mexican Peso is gaining ground over the Buck as it has already touched its best value since last October. As trouble brews for the U.S., one silver lining in the news has been the relationship between Mexico’s President Claudia Sheinbaum and U.S. President Donald Trump, which has helped in minimizing disturbance between the two countries as they continue to trade. We shall see if there will be room this week to discuss much else other than how the financial environment will be shaping for the U.S. as 2025 keeps bringing new headwinds. Retails Sales for February come out Wednesday while we get mid-April inflation in the form of Consumer Price Index on Thursday.
EUR ⇑
The Euro has reached its strongest level over the dollar since November 2021. Without activity on the other side of the pond, the shared currency is rising because of market concerns over the U.S. exacerbated by the clouds over Fed policy and pressures from outside. This week will be all about gauging productivity and confidence from producers as PMIs are released in Europe as well as other regions.
