The U.S. Dollar is trading in weaker ranges as markets look for a safe play with concerns over the Fed and global resilience to the challenges of the first half of the year
Overview
Data will be out this week gauging performance at the national level as well as for public companies’ earnings. Stocks remain near record highs, but these reports will test how resilient things are after months of adjusting to proposals and implementation of tariffs. Thus far in July, the Buck has been mounting a comeback improving by 1.0% per the Bloomberg Dollar Spot Index.
Domestically, we will see June as well as some July numbers on manufacturing, labor, and productivity according to decisionmakers in the form of Purchasing Managers Index. Housing, labor and Durable Goods Orders will also be in the mix. Expect more headlines about nations reaching deals to avoid being penalized with higher levies while talk continues about the Fed’s potential for cutting interest rates once-twice for what is left of the year.
What to Watch This Week…
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro is starting the week on the right foot, rising by over a third of a percent against the Buck. July has been a month of loss of momentum for the shared currency however, as it has lost a little over 1.0% of its value. Although the idea of never-ending tariff negotiations bode poorly for tender, there is enough confidence in growth prospects in Germany and across the Euro-zone keeping spirits high. Although their effectiveness are being questioned, the EU announced 18 new sanctions against Russia while also being committed to helping Ukraine with billions in aid. As a united front, all nations of the EU are working on retaliation over U.S.-based tariffs to force a rethink. PMIs for the region will be out on Thursday.
JPY ⇑
The Japanese Yen has dwindled throughout July, losing already 3.0% of value against the Dollar thus far for the month. It is up this morning as markets look for continuity in Prime Minister Shigeru Ishiba’s ongoing rule despite facing a loss over elections this weekend that saw his party’s ruling majority in the Upper House disappear. This is the best day of trading for the Yen in over two months following a steep decline ever since the month started. Market participants had envisioned scenarios of deeper losses for Ishiba’s party along with his resignation if results were deemed a significant loss in exercising power and authority. Fiscal plans may run into trouble, and we shall see if there will be appetite to increase interest rates that could rattle the financial environment.
