The U.S. Dollar is trading in better ranges as the energy crisis in Europe seems to be here for the long haul as long as there is conflict in Ukraine.
Overview
Indeed, the headlines about Moscow’s willingness to keep cutting flows of natural gas to the massive continent are making investors worry that recessionary damage will be heavy. Meanwhile, domestically all eyes will be on the Fed tomorrow, so today figures to be a day of primarily paying attention to the turmoil that the prolonged state of the war is causing.We will get more exciting data tomorrow in the form of durable Goods Orders and other gauges of consumption, while today we just have New Home Sales at 10 AM. Income and other important figures will be out on Friday. Investors and traders are also expecting choppy markets as we enter a period of holiday for many for the end of July and August.
What to Watch Today…
- No major economic events are scheduled for today
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EUR
The Euro has been knocked down by almost 1.0% as problems are once again mounting against the economic situation of the Ancient Continent. Outside of the Italian political uncertainty, the nations of the EU have been forced to agree to lower energy consumption for this year’s winter as the message from the Kremlin seems to be of ongoing cuts over energy exports.
Gazprom, the Russian energy giant, announced there will be an additional 20.0% reduction in flows for the main feeding pipelines. We shall see if Euro damage will mean a return to its weakest level in over two decades or if there is resilience.
GBP
The pound is also on the decline based on the globe’s sour mood and could have further room to dwindle. The campaign for a new Prime Minister continues following a TV debate between the two front-running Tory members, Rishi Sunak and Liz Truss. Sunak and Truss served Johnson’s cabinet aptly and seem to have very few differences with the exception of a proposed tax cut by Truss.
Per the markets, it is not a very welcome tax cut proposal as the government should be looking to spend more as well as collect more revenue. Sunak will need more than just countering her economic logic as her momentum has taken away other more favored candidates.
