The U.S. Dollar is starting off the week on its back foot with slight weakness across most currencies.
Overview
Last week’s focus on equities after a monumental moment for the Tech industry put all other items affecting markets on the back burner. The Buck had the lowest volatility in two years while most headlines focused on the future to be if A.I. and other technologies are to dominate the global economy. Marker concentration is now becoming a cause for concern.
Meanwhile, there are geopolitical items such as shipping routes feeling on the edge after the U.S. and the U.K. escalated attacks on Yemeni Houthi territory. Inflation has remained stubborn for regions outside North America on certain items as a result of longer times in commercial deliveries. In Commodities, iron ore experienced a steep decline last week that markets hope is alleviated by renewed faith in China post-holiday.
This week will have key figures released starting tomorrow with Durable Goods Orders and Consumer Confidence. The Fed’s preferred inflation gauge in Personal Consumer Expenditures will be out Thursday. Additionally, we will see if other Fed officials echo the sentiment of New York Fed President John Williams, who said later this year, a cut to interest should be in the books.
What to Watch Today…
- Durable Goods Orders, Tuesday 8:30 AM
- PCE Deflator, Thursday
- Euro-zone CPI, Friday
- Monex USA Online is always open.
EUR ⇑
The Euro continues to cling on to a slight rise following last week’s positive readings out of Germany. While expansion has been tough to come by in Europe, it was refreshing to see the Purchasing Managers Index indicate that producers may be leaving some worries of last year behind. Talks between leaders across the EU will start taking place to work on a comprehensive supervisory body for EU capital markets. This development could impact the shared currency long-term. As far as the short-term is concerned, we have Consumer Confidence for the region out on Wednesday and Consumer Price Index on Friday.
GBP ⇑
Sterling is not a big mover today, much like last week, and could stay relatively quiet without much in the horizon this week. A reading of Retail Sales revealed this month had a contraction instead of the expansion expected. There will be Housing as well as Manufacturing data out on Friday. As the Russian invasion marks its 3-year anniversary, there will be more to watch out for on news about efforts to aid Ukraine.
