The U.S. Dollar is trading slightly stronger as currency pairs have remained in mostly familiar ranges as the focus in markets is on equities and earnings reports.
Overview
Indeed, tech firms are dominating headlines with the report out due for Nvidia, the chipmaking company that has seen a tremendous jump in valuation in the past two years.
For now, markets are setting aside concerns over the macroeconomic impact of tariffs that are said to be implemented soon on a variety of products as well as nations. Meanwhile although no peace deal has been achieved for the Russia-Ukraine conflict, Ukrainian leadership is supposed to get negotiations going over a minerals and trade deal as Europe also tries to get involved by speaking to the White House.
Last night, news broke that the House of Representatives passed a budget looking to also extend tax cuts. While markets react and digest the implications, volatility will remain a feature ahead of tomorrow’s Durable Goods Orders, Initial Jobless Claims, and Gross Domestic Product figures. Later at 10AM we will see January New Home Sales data.
What to Watch This Week…
- Durable Goods Orders, Initial Jobless Claims, GDP on Thursday
- U.S. PCE on Friday 8:30AM
- Monex USA Online is always open
Complete Economic Calendar can be found here.
EUR ⇓
The Euro hit the brakes after rising based on positive momentum following German elections and the optimism behind a turnaround in Ukraine. Much has been discussed about Europe’s need to start spending more on Defense, which has also boosted stock markets looking to progress down the line. Investors have been worried over trade issues that could develop, but markets are starting to price in some of the associated havoc and not seeing as total detriment. Thursday’s reading on February confidence across the Euro-zone could spark a comeback if on the plus side.
AUD ⇓
The Australian Dollar is the biggest loser of the trading session thus far, falling to its weakest level in two weeks as inflationary pressures continue bugging the economy. Last week, the Reserve Bank of Australia cut interest rates by 25 basis points to keep stimulus-driven momentum for the financial system, but price figures showed that inflation remains elevated at 2.8%, a jump from December’s 2.7%. With China struggling a bit as it copes with challenges to trade, expect Aussie to stay under pressure and wildly vulnerable.
