The U.S. Dollar is trading in mostly favorable yet tight ranges against its peers ahead of FOMC Minutes later as well as details over the trade status of some nations when it comes to tariffs.
Overview
It is yet another day of waiting for more information about trade, which is keeping risk markets cautious as analysts have noted that markets have overreacted to previous announcements. One thing that seemed to be a positive development was in regard to the European Union coming up with a framework to work on achieving better terms as it looks to avoid friction with doing business with America.
As mentioned above, Fed Minutes from the June 18th meeting will be out at 2PM giving investors a chance to dive into insights into monetary policy thinking. Swaps markets are still pricing in two reductions to interest rates for the year and odds of the FOMC jumping into action at their September meeting stand at 65.0%. Tomorrow, we will take a look at how the labor markets have started the second half of the year with Jobless Claims figures out first thing in the morning.
What to Watch This Week…
- FOMC Minutes 2PM Wednesday
- CPI 8:30AM Thursday
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇓
The Euro has lost over half a percent in the past few days as momentum halted a rally that brought the shared currency to its highest levels over the Buck since September 2021. As noted in our July Currency Outlook, the euro had the best first half of the year since the second half of 2017. Without any data points until next week, when price-growth as well as Industrial Production will be released, we will see if any talks about trade resolution can give the currency another boost that puts it on the path to break through another multi-year zenith.
MXN ⇓
The Mexican Peso is unmoved at the moment, preventing further losses to the Dolar emanating from concerns that were sparked by the news of a 50.0% tariff added to copper. Since raw material is important to all trade and the construction industry, plenty of Emerging-Market assets started to flounder. Mexico is hoping to remain in good relations with the White House as it has also aided in the Texas flood recovery efforts. It is possible the Peso can return to gains following inflation data suggesting price growth is just slightly above forecasts. June year-over-year average Consumer Price Index came in at 4.32% vs. 4.30% after a spike in June for basic items.
