The U.S. Dollar has been trading in tight ranges all week long and today happens to be no exception even as we enter the last month of Q1.
Overview
February was characterized by a tremendous boost to equities but also concern over the market concentration we are currently facing, with just a few companies leading in earnings, profits, and enthusiasm behind their technologies. The Dollar, meanwhile, has stayed steady as markets digest stimulus implementation in China to spur growth and a return to stock advancement in their exchanges.
Data has been on the side of showing improvements in a few nations like France, better growth than anticipated in Canada, and only currency movement for tender down under in Oceania. Overall, the Buck’s weekly advance amounted to just 0.2% as American economic indicators have provided no surprises and Fed officials have been keeping their message in unison about leaving interest rates alone for now.
FX volatility remains at a 2-year low. We shall see if construction and Manufacturing indicators change that later when released at 10AM along with the University of Michigan Consumer Confidence.
What to Watch Today…
EUR ⇑
The Euro has not gotten away from familiar ranges in the past two weeks and amassed a decline of just over half a percent for the month of February. Regardless of the loss for the shared currency, numbers out of Europe showed that things are gradually, though slowly, getting better across all sectors of the economy. February’s Euro-zone Manufacturing Purchasing Managers Index showed a higher reading than expected while inflation in the form of Consumer Price Index had a monthly gain bringing the Core Year-on-Year average up to 3.1% from 2.9%. Thus far for the year, Euro has dropped 1.2% in value.
CAD ⇓
The Canadian Dollar is also muted, which we find surprising following data indicating better growth than was originally thought. Gross Domestic Product figures showed that December was flat, but Q4 overall experienced a 1.0% climb instead of 0.8% at first revision. Additionally, Q3’s unfortunate contraction was also reduced from (-1.1%) to (-0.5%). Plenty of more stats next week should contribute to swing “Loonie.” CAD is down 2.0% year-to-date.
