The U.S. Dollar weakened overnight thus ending the 2-day rally it experienced as trade questions arise with the Strait of Hormuz holding tankers.
Additionally, markets have a negative sentiment towards the idea that the blanket 15.0% tariff on most imports will be imposed. Overall, the Buck’s role as a safe-haven asset as dropped with ongoing doubts about economic growth with evidence that Q4 represented a significant slowdown.
When it comes to energy costs wildly trading, the White House explained that it could have the Navy escorting oil ships if necessary. However, other key materials go through the water passage such as fertilizer as well as aluminum. Data-wise, labor saw a bit of improvement with February ADP Employment Change seeing more payrolls added than expected at 63K vs. 50K. At 9:45AM, we will get the release of S&P Global U.S. Composite Purchasing Managers Index. Later at 2PM we get the Fed’s Beige Book, which could move the needle.
What to Watch This Week…
- Euro-zone Q4 GDP, Friday
- US Nonfarm Payrolls, Friday 8:30AM
- Monex USA Online is always open
EUR ⇑
The Euro climbed a bit after falling to its weakest level since mid-January as a rush to the Buck has faded. A few economic indicators also helped in bringing some recovery to the shared currency with HCOB Eurozone Composite PMIs coming in with an expansionary reading and Producers Price Index from January, which came in at 0.7% more than triple the estimated 0.2%. European markets are also wondering about the length of the conflict and nations are adding pressure on the U.S. to move quickly and reach a deal instead of participating in more damage to the Mid-East.
MXN ⇑
The Mexican Peso jumped by close to 1.0% this morning after suffering Tuesday its worst daily performance since April 2025. Without much in terms of major data points, the Peso has been at the mercy of headlines, while traders and investors look for potential resolutions. Across the Pacific Rim, the Korean Won (KRW) collapsed to a 17-year low after its stock exchange faced a major sell-off. It wiped off $430.0BN in value thus far this week. Sinc Asia’s manufacturing hubs highly depend on Middle East trading; it makes it seem like companies will struggle to produce as they are accustomed to. It is affecting global markets in a big way with the MSCI Emerging Markets Currency Index down 1.5% from its all-time peak reached on January 27th.
