The U.S. Dollar is trading in weaker ranges all across the board, close to hitting a fresh new low since beginning of last November.
Overview
Overall, financial markets seemed rejoiced yesterday after news came out that the White House would delay “Liberation-Day” proposed tariffs for a 90-day period on nations that did not intend to retaliate. Also, the White House claims that plenty of nations and their leading figures have been making calls to work on new deals.
Nevertheless, the mood at the moment seems of concern over future purchases and flows as already some orders have been paused on materials and goods from China. Traders as well as investors are worried that recessionary pressures will indeed materialize without clarity over trade.
Meanwhile, inflation is showing signs of decline with the March Consumer Price Index registering at (-0.1%) versus the 0.1% expansion expected. Federal Reserve officials have commented on the need to hold monetary policy where it is in order to not add to the risk and anxiety in the environment. Tomorrow, we close out with Producer Price Index numbers and get a glance at comfort and confidence out there via the University of Michigan Consumer Sentiment survey.
What to Watch This Week…
- University of Michigan Consumer Sentiment 10AM
- US PPI on Friday 8:30AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro is now trading at its strongest level over the Buck since the end of last September. Without much in terms of data, the shared currency has been lifted by headlines over the 90-day break on proposed tariff increases, which has boded well for almost all currencies out there. Leaders from Euro-zone countries like in Spain have shown willingness to use the opportunity to bargain and rethink the relationship with the U.S. as well as other partners. We will get data points next week, but more importantly, we will get to hear from the European Central Bank on Thursday. We shall see if cutting into interest rates may calm the resurgence in Euro value.
MXN ⇓
The Mexican Peso is down, being one of the few exceptions to thriving in the midst of a dollar collapse. In general, the Mexican economy as well as the rest of LATAM could face recessionary pressures from all the trading havoc and a weakened U.S. down the line. If Stagflation shows itself strong, it will bring down other countries, more immediately, the ones in this hemisphere.
