The U.S. Dollar is trading in mixed yet tight ranges in a week marked by resurgence for risk-appetite and big swings for the prices of energy and metals.
The Buck has not moved a ton regardless of data releases, with January thus far only producing a half percent bump for the currency overall, according to the Bloomberg Dollar Spot Index. Technology is once again the attractive play while geopolitical issues and concerns over the future of monetary policy have mattered for oil, copper, and silver which touched record highs. Meanwhile, 89.0% of the 28 companies that have presented their earnings reported numbers that were higher than anticipated.
Later at 9:15AM, we will get December’s Industrial Production, which could surprise with low expectations of just a 0.1% advancement. Next week, we will get to digest more crucial indicators such as Q3 Gross domestic Product growth along with the Federal Reserve’s favorite gauge for inflation in the form of Personal Consumption Expenditures. FX moves have been mild but at the end of January it promises to carry a lot of weight with the Fed’s meeting scheduled for January 28th. On Monday, MonexUSA offices will be closed in observance of Martin Luther King Day.
What to Watch This Week…
- Monex USA Online is always open
MXN ⇑
The Mexican Peso was the biggest mover and best performing currency against the Buck this week with a 1.9% surge. Currently, the exchange rate is the strongest for Peso over the Buck since mid-July 2024. Although no crucial indicators were out this week, energy prices going up along with overall good news for trading with China’s surplus helped MXN climb as well as other Emerging-Market assets to recover after starting the year slumping a bit. Inflation, Retail Sales, and other economic activity will be released throughout next week, likely to make an impact, perhaps solidifying the Peso’s advancement.
