The U.S. Dollar is closing a tumultuous week with an overall gain of half a percent per the Bloomberg Dollar Spot Index.
Overview
After reaching levels not seen since the spring of 2020, the buck has settled at being at its strongest point since July 2020 at the moment.Although Europe and plenty of the world are closed in observance of the Easter holidays, there was U.S. data to be released this morning with N.Y. Empire Manufacturing April Survey was shockingly better than expected at 24.6 vs. 1.0 estimate. The prior month was a contraction, expressing concern and pessimism over the economy, but opinions by business leaders in the region have changed.China did not do anything surprising, choosing to modestly ease things for their financial system despite the threats imposed by COVID-related lockdowns. On the other hand, the Japanese Yen remained around its worst levels in 20 years as the gap between bond yield offerings continues to grow.It is possible we have seen a peak for the buck against the Euro following the ability of the shared currency to bounce back following the European Central Bank meeting that promised to end quantitative easing later and admitted to economic downside risks.
Nevertheless, uncertainty and even the toll of war are starting to be priced in to bets the ECB will eventually hike rates, ultimately aiding the Euro’s ability to stay buoyant. Perhaps, the narrative could get more bullish.
What to Watch Today…
- No major economic events scheduled for today
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