The U.S. Dollar is trading in mostly familiar and tight ranges as other market classes enjoy the reprieve in armed conflict negativity and optimism that progress is being made in easing tensions.
Indeed, equities rose with the S&P 500 Index reaching a record high primarily benefiting from upbeat news in the tech sector. Although some doubts remain about artificial intelligence, the companies involved in the making of the technology for semiconductors are feeling quite positive. Taiwan Semiconductor Manufacturing Co. had a better-than-expected revenue outlook, showing that demand for chips remains strong.
Meanwhile, the Middle East blockade remains but seems like some traffic through the Strait of Hormuz may be possible via the Oman side as part of a proposals from Iran. Negotiations seem to be back on the table as the Iranian delegation returned to Islamabad as Pakistani leaders continue to help mediate. Oil markets seemed to take the news with caution as Brent Crude increased in price to $96.0/barrel. While we remain tied to any breaking news headlines regarding war and peace, there will be labor numbers to digest along with March’s Industrial Production scheduled for release at 9:15AM.
What to Watch This Week…
- US Industrial Prodcution 9:15AM
- Monex USA Online is always open
EUR ⇓
The Euro is hovering around the same level as yesterday, which at one point meant hitting the highest cost since end of February. European leadership is focused on helping with diplomacy while monetary decisionmakers have stated concern over inflation. They are getting their evidence after earlier March Consumer Price Index figures came out higher than forecast at 1.3% for the month instead of 1.2% estimated. Subsequently, the annual average climbed a bit from 2.5% to 2.6%. Next week, we will get numbers from Purchasing Managers Index surveys that may help show if growth is stagnant or steady.
MXN ⇓
The Mexican Peso is down just slightly against the Buck but had improved earlier to its strongest level since the start of March. Without any major data to consume currently, MXN as well as Emerging-Market currencies have gone up, solidifying a run since April to recover what was lost throughout March. Next week, Mexico will get inflationary gauges as well as Retail Sales, but for now, movement remains limited.
