The U.S. Dollar is trading in weaker ranges against most currencies to close out a week characterized by concern over trade disagreements and risk markets in a downward spiral.
Overview
While equities moved into potential market correction territory, the price of Gold hit a record $3K/ounce as a sign of investors fleeing towards safe-haven assets. The pressures from tariff implementation on metals this week along with significant friction with Canada as well as Europe are fomenting doubts over the future of economic growth without clarity over what is meant to be achieved.
The week does seem to be closing with a little bit of progress when it comes to alleviating fears over a government shutdown with overnight reports of enough support from Democrats in the Senate to pass the proposed budget that is expected to have White House approval. Later at 10AM, we get the last piece of U.S. data in the form of the University of Michigan Consumer Sentiment survey which has been on the decline since the year began. Thus far mid-March, the Buck has lost 2.5% of its value overall per the Bloomberg Dollar Spot Index.
What to Watch This Week…
- Monex USA Online is always open
Complete Economic Calendar can be found here.
EUR ⇑
The Euro is back to appreciation as a result of the German government coming together to agree on a major debt package to expand lending and allow for unprecedented spending. This has carried Euro to very strong levels not seen since the beginning of Q4 2024. This month has witnessed the common currency climb by 5.0%. Regardless of loose monetary policy, the outlook for Europe is also solid if a ceasefire and some sort of peace can be achieved between Russia and Ukraine.
GBP ⇓
Pound Sterling is being held back despite a run against the Dollar by most major peers, with GBP improving by almost 3.0% thus far in the month. Unfortunately for the U.K., growth is not coming along although the outlook for the future is optimistic. Gross Domestic Product for January disappointed coming in at (-0.1%) vs. 0.1% expected while Industrial Production shrank even more by (-0.9%) when it was expected to just be slightly under 0.0%. The Bank of England will meet next Thursday and the prediction is that they will hold interest rates at 4.5% so any other move would be surprising and could erase some of the March gains
