The United States Dollar is on a tear today, gaining substantial ground against all G10 currencies
Overview
Volatility in the FX world is extremely high across the board, with EUR/USD volatility touching its highest point since early in 2023 and other major currency pairs following suit. The Bloomberg Dollar Index has gained almost half a percent in trading today, and EUR and GBP are leading losses against USD. Both currencies are down more than a percent against the Buck in the morning’s trading session.
The economic data calendar is still fairly quiet after a shortened holiday week, but the FX markets themselves certainly are not. With little to go off of on the data front, today’s big USD move could be read as preparation for the incoming Trump administration’s proposed policies in just a few weeks. The next congressional session also begins tomorrow, with the Republican party holding majorities in both houses. Overall, markets are preparing for a very different global trade dynamic than the rather open policies we’ve seen for the last four years, and the Buck may be a big beneficiary of this shift.
What to Watch This Week…
- Manufacturing PMI, Friday 8:30AM
- Monex USA Online is always open
