The U.S. Dollar is trading in mostly muted ranges without major data points and markets assessing the impact of tariffs as earning reports are reviewed
Overview
Overall, the Buck has remained mostly weakened after a session yesterday that countered a theme of recovery throughout most of July. As the month races towards its endgame, there will be plenty of economic indicators to chew, but not today. The August 1st deadline is quickly approaching, and we are getting word of a few nations, such as the Philippines that may announce a deal in order to avoid the levying proposed.
Economists and traders are surprised at how investors have been able to navigate through plenty of doubt-inducing events that would theoretically lead to less risk-taking, however, we are witnessing a rally that is hitting records in equities. As an example, the S&P 500 Index is already trading 22 times the expected 12-month profits while not falling by 1.0% daily in a trading session since June. We will get some figures gauging Housing in Existing Homes Sales for June while Thursday is the big day for July Purchasing Managers Index. Any headlines on trade relief could move the Buck lower against its peers.
What to Watch This Week…
- Existing Home Sales Tomorrow 10AM
- PMIs on Thursday 8:30AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇓
The Euro has slowed down a bit after reaching multi-year highs and could see further declines if the European Central Bank fosters a “dovish” tone during Thursday’s announcement. Recent European developments have led to the belief that the Euro-zone is on a path towards growth and has a major impact on productivity with more spending on the way. As Germany opens up its coffers, expenditures in everything from infrastructure to defense systems is expected to spark the rest of the continent. We shall see how confident consumers feel with that figure out tomorrow being the preamble to monetary policy guidance.
MXN ⇑
The Mexican Peso has improved to its strongest level over the dollar in two weeks. Numbers from May showed that Retail Sales climbed by more than expected. Sales jumped by 1.8% instead of the 0.4% anticipated while the annual average rose to 2.7% from 1.1%. A measure of Economic Activity did come in at a slower pace than economists thought, but at least it remained in positive territory. Tariffs will be messing with the flow of MXN as well as other Emerging-Market tender.
