The U.S. dollar overall is little changed from Friday despite a number of “risk-off” events that have caused global equities to tumble.
Overview
Data out of China showed that the world’s second-largest economy slowed more than expected last month. Retail sales and industrial production were all down. Nagging worries about the delta variant of the coronavirus and the quick collapse of the Afghan government over the weekend have weighed on global risk appetite, but the dollar has not taken advantage. Instead, the safe-haven Japanese yen and Swiss franc have found favor.
The debate over when the Federal Reserve will taper its stimulus continues to rage. Many expect Fed chief Jerome Powell to lay out the central bank’s plans at the Jackson Hole symposium at the end of the month. We will get a look at their most recent decisions when the minutes of their last meeting are released on Wednesday afternoon.
Today’s economic docket is light with only Empire manufacturing out later. U.S. retail sales are due out tomorrow morning and could cause volatility.
What to Watch Today…
- Empire Manufacturing at 8:30 a.m.
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EUR ⇓
EUR/USD traders will be hard-pressed to find events on this week’s calendar to be excited about. Nevertheless, Euro remains near the bottom of recent ranges. Indeed, the beleaguered Euro is within half a percent of the lows that were seen at the beginning of the month. The Euro is also less than a percent away from its lowest level of 2021.
CAD ⇓
The Canadian dollar is down to start the week following news that a snap election will be held next month. Prime Minister Justin Trudeau appears to be trying to capitalize on polls showing his Liberal Party with a big enough lead to retake the majority in parliament.
The price of commodities has tumbled across the board following the poor Chinese activity data, also denting commodity-based currencies such as the loonie and Australian dollar.
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