The dollar is modestly weaker against most of its rivals to start the month, the fourth consecutive day of decline.
Overview
U.S. equity futures are flat following this morning, following their strongest month since 2020 in July. The dollar is down for a fourth consecutive day against the Japanese yen, the longest losing streak since the beginning of the year.Overall, the dollar lost over half a percent last week. The Federal Reserve did hike an aggressive 75 basis points but gave vague guidance that the central bank will likely slow its tightening at its next meeting in September. The outlook for global monetary policy will continue to be the main driver in currency markets for the duration of the year.Today’s economic docket includes ISM manufacturing and construction spending at 10 a.m.
What to Watch Today…
- ISM Manufacturing at 8:45 a.m.
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EUR
The Euro rose as much as half a percent overnight, reaching its strongest level in over a week. However, the common currency has given back some of those gains in early trading following dismal economic data. European factory activity plunged.
Purchasing managers’ indexes from across Europe showed a decline. Indeed, the four largest economies in the EU all shrank. The overall manufacturing purchasing managers index fell to 49 from 50.2 in June. 50 is the break-even point between growth and contraction.
CAD
The Canadian dollar was able to join its G10 counterparts and gain versus the U.S. dollar to start the month. The pop for the loonie comes even as the price of oil declines. West Texas Intermediate crude fell 2.1% to under $97 a barrel. USD/CAD is down for a fourth consecutive day. There is no major economic data on the Canadian docket today so expect USD/CAD to continue its momentum and take its cues from American data.
