The U.S. Dollar is in tight ranges as we get into the heart of August with its heat, holiday-taking, and head-scratching over how the recessionary pressures will play out for the remainder of the year.
Overview
Recent U.S. data has suggested that the dire situation we painted for ourselves in July does not necessarily reflect the ongoing dynamics of an economy trying to find stability after being hit with a variety of obstacles for years. Friday’s non-Farm payrolls helped establish that the battle against inflation is the primary focus as people continue to find employment, just not enough in wages to keep up with prices skyrocketing for everything.
Over the weekend, the U.S. Senate managed to pass a climate, tax, and health-care bill that aims at improving the economy’s situation while promising both spending and countering inflationary growth. Thus far, it looks like equities could welcome the good news, but geopolitical issues are holding back plenty of optimism.
China and the U.S. remain tense over Senator Nancy Pelosi’s visit to Taiwan and military exercises China has launched as a consequence. We will get Iran nuclear treaty talks today and see if that has some impact as it also revolves around future oil supplies. Wednesday, we get July Consumer Price Index figures.
What to Watch Today…
- No major economic events are scheduled for today
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EUR
The Euro has managed to remain resilient facing challenges following its deep downfall to 20-year lows in July. The EU will likely keep things kind of quiet for the month as even journalists tend to take a break for a few weeks. Russia and Ukraine remain in conflict, while Italy aims to have elections for a new Prime Minister at the start of September. Any other surprises could make for a more volatile shared currency, but these feel like calmer times than four weeks ago.WTI crude is down 0.5%, putting modest pressure on the loonie.
GBP
Things are indeed rather quiet to start the week on the other side of the pond. We will see on Friday if there is a strong reaction to Q2 preliminary Gross Domestic Product growth numbers. The campaigning for Prime Minister continues, but there seems to be little excitement for the two candidates left duking it out.
