The U.S. Dollar is trading in mostly familiar ranges with markets keeping close attention to any developments in talks towards peace in the Eastern front.
Overview
As the United States plays the role of intermediary, markets seem to be welcoming the potential for a deal that can bring the armed conflict to a halt between Russia and Ukraine. Additionally, risk-appetite is also being aided by the idea that the U.S. government will take a stake on Intel Corp. to assist in making the firm more competitive and sophisticated than overseas rivals. Meanwhile, treasuries also surged after affirmation of AA+ rating for the U.S. long-term by the S&P Global Ratings.
We shall see if Fed Minutes tomorrow reveal anything that may give further guarantee to investors and traders that September is lined up for an interest-rate cut. Housing Permits for July this morning revealed a surprising expansion of 5.2% when a contraction of (-1.8%) was expected, however Building Permits plummeted by (-2.8%) vs. (-0.5%) estimate. On Thursday, we will get to look at productivity and investment in capital with August Purchasing Managers Indices. Without much from economic indicators, we are at the mercy of headlines.
What to Watch This Week…
- FOMC Minutes Wednesday 2PM
- PMIs Thursday 9:45AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro is slightly rising over the Buck driven a bit by positive sentiment across the Atlantic. The Stoxx 600 Index climbed by over half a percent as a result of positivity behind efforts to bring Russia and Ukraine to agree to putting down weapons and negotiate a long-term peace pact. While some details are emerging about what Russia is seeking in order to cease all aggression, the economic, particularly energy, challenges are clearly bringing leaders to seek multilateral solutions that can make the countries accountable to more than just the U.S. While some activity and trading is affected by summer vacationing, this is a crucial time for finding resolution to an issue plaguing the continent’s ability to grow
MXN ⇓
The Mexican Peso is moving in tight ranges like other peers as markets eagerly watch for any breakthrough in U.S.-backed as well as EU-supported talks between Russia and Ukraine. On the Pacific Rim, China is trying to make a difference in its narrative by recently announcing more efforts to stimulate the economy. While it has not translated into growth as far as July statistics show, China’s broad fiscal spending grew at the fastest pace in three years. The government is feeling similar pressure to aid as it did during the post-pandemic re-opening of the economy. Emerging-Markets can see benefit from a more determined China, but the results may not be positive nor clear until a few months from now.
