The U.S. Dollar remained mostly strong across the board as markets remained cautious over the optimism that recently pushed a rally.
Overview
Headlines highlighting growing doubts over economic well-being are causing many to wonder if, indeed, a recession is going to materialize. Furthermore, inflationary figures continue to scare those hoping for an easing on that front and thus add to bets that the Fed and other central banks simply will not escape the need to increase borrowing costs and actually dent demand to bring prices down.
As discussed in our Outlook for June, much of the blame for prices staying high can be pointed at corporations using excuses from pandemic worries and post-war issues. However, central banks cannot run away from their responsibility, and markets all around are worried this will only mean an intentional slowdown. With China struggling and the U.S. dragging, it is indeed understandable why FX is once more swinging in the buck’s favor. Many of the multi-month highs currencies had over the dollar have taken a toll.
What to Watch Today…
- No major economic events are scheduled for today
- Monex USA Online is always open
Holiday Donation Results – Thanks for Helping!
Earlier this year, Monex made a donation in honor of your continued trust in us for your FX needs. We’re happy to report that each charity received a percentage of an overall amount based on your votes. Thank you for participating! View Results
Monex USA introduces OPTIONS
With currency exchange rates in a constant state of flux, companies transacting cross-border face the risk of losing substantial sums of money if they fail to hedge their exposure to these shifts. Monex USA now offers a wide range of FX options that could help your business better manage risk. Learn More
AUD ⇓
The “Aussie” is fast getting away from its best levels over the buck since February after a round of pessimistic news items has led to global risk-aversion. China is looking anemic, and trade in general, hitting a few headwinds is affecting all currencies across the board. A rainy June 21st is how we are welcoming a summer that seems to be inspiring some gloom mostly.
GBP ⇓
Sterling has dropped half a percent after the release of the Consumer Price Index and Retail Price Index for May revealed that the pace of price growth is not slowing down. Sitting now at 8.7% on the annual average, it is beyond the expected breaks of 8.4%. After hitting multi-decade high prices on items such as daily food staples, the U.K. economy is quickly descending into havoc, and economists fear a period of pain is developing. “Stagflation” is once more haunting any progress on the other side of the pond.
