The U.S. dollar fell to start the week but has paired most of those losses in early trading.
Overview
The Bloomberg Spot Dollar Index is 0.2% lower. Global equities are mostly higher, diminishing demand for the safe-haven dollar. Most notably, Tesla Inc. has risen 5% in pre-market on the back of a Twitter pole in which users voted in favor of Elon Musk stepping down from a leadership role in the social media company. With no major economic data on today’s docket, expect the greenback to ebb and flow with the prevailing risk sentiment. There is still a pop of data on this week’s docket including GDP on Thursday. There are no more Fed speakers on the docket for the rest of the year
What to Watch Today…
- No major economic events are scheduled for today
- Holiday Hours: Dec 23, Dec 30: 8:30a to 3p EST; Dec 26, Jan 2: CLOSED
- Monex USA Online is always open
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EUR ⇑
The Euro is up modestly against the U.S. dollar today following a few hawkish comments from European Central Bank members. ECB Vice Present Luis de Guindos said half-point increases in borrowing costs should continue to fight soaring inflation. Eurozone inflation is still above 10% so his sentiment is, of course, reasonable. However, the recent Euro rally seems to be running out of steam. The Euro is up 4% against the dollar since Thanksgiving and 9% since early November. However, the Euro has given up a percent over the past three sessions.
AUD ⇑
The Australian dollar was the biggest winner overnight, albeit only a 0.4% increase against the U.S. dollar. Some commodities are trading higher to start the week as China’s top leaders vowed to boost the economy next year. Chinese stocks rose but the increasing Covid numbers have likely capped those gains. Australia’s Foreign Minister Penny Wong will travel to Beijing Tuesday. China is Australia’s largest and most important trading partner.
