The U.S. Dollar is trading in mostly quiet ranges across the board with limited movement for most pairs as the week was characterized by adjusting to the effects of new leadership globally.
Overview
After the U.K. had major elections and the NATO Summit gathered a mix of new and outgoing top-level officials, last weekend’s shooting marked a moment of reflection over political violence in America while also increasing the likelihood that the Trump agenda will have a second term. With his proposals for protectionist trade policies and domestic expenditures, markets have adjusted their bets for Federal Reserve policy turning looser and making the Buck potentially much weaker down the line.
Simultaneously, economists have been speaking about the chances of other undesired economic effects that may arrive from the Trump approach so it has made for a lack of clear guidance on where the Buck’s value may be headed. Overnight, technology faced major outings negatively impacting the trading sessions as computer systems had to be fixed over the disruption.
There is a bit of risk-appetite building to make up for it, especially after Jobless Claims yesterday revealed their highest increase since early May. There may be few more Fed comments as John Williams and Raphael Bostic chime in as day closes.
What to Watch Today…
- Monex USA Online is always open.
JPY ⇑
The Euro saw no major impact from a determined European Central Bank to stay data-driven before making another interest-rate cut. The ECB’s next meeting will not be until September 12th, giving officials a chance to take their summer break while also looking for summer numbers to paint a picture for the rest of the year. If indeed the next decision announcement delays a reduction to borrowing costs, Euro could regain value and head back towards it best levels since year started.
GBP ⇑
The Mexican Peso has lost 1.3% of its value throughout the week as speculation over what a Trump administration may mean to “Nearshoring” and relations with Mexico. Trump’s idea of increasing tariffs on all trade partners to encourage domestic U.S. production may spell bad times for Mexico. Our neighbor became our biggest trading partner, but more friction on that front could derail the economic benefits that Mexico has experienced. No data this week meant not looking at fundamentals, which will be gauged next week.
