The U.S. Dollar trading in familiar ranges as traders and investors look forward to the release of the Fed Minutes from their previous meeting at 2PM later today.
Overview
While FX flows remain relatively tight for the most part, equities have seen an eight-day streak of gains come to a halt as doubts are growing over the effects of artificial intelligence for firms outside of high tech. Slowly but surely, the Buck has been gaining overall consecutively in the past three days.
The U.S. government shutdown continues so we are at the mercy of headlines about any progress in coming up with a deal that will get all federal services at 100.0%. Without clarity over data, private gauges of labor have been presenting a picture that is worrisome with job creation under 20K according to some estimates. Without official numbers, it is hard to form a true story of what is happening in the labor sector as well as the whole economic situation.
On Friday, we will get the University of Michigan Consumer Sentiment survey for October. The trend recently has been of uncertainty and declining optimism.
What to Watch This Week…
- Monex USA Online is always open
MXN ⇑
The Mexican Peso is recovering losses from yesterday and currently sits about half a percent away from reaching its strongest level since July 2024. While there is a lot of turbulence, the Mexican economy has remained resilient and relations with the U.S. have been good enough to handle some friction over trade. On Thursday, we will see inflation in the form of September Consumer Price Index while on Friday we close the week with Industrial Production from August. These are chances for positive data to boost Peso advancement. September was a good month for the neighboring tender, rising by 2.2%.
JPY ⇓
The Japanese Yen has reached its lowest value point since the start of February as markets get ready for a new administration that may change the perspective on Japan’s approach to the financial system. Prime Minister Sanae Takaichi’s unexpected win to head the Liberal Democratic Party is coming with a flare of the past, with the new leader interested in bringing back pro-business policies that were anchored by former PM Shinzo Abe. More spending will likely mean pressure on monetary policymakers to maintain an easing-oriented environment going forward. The Bank of Japan will meet at the end of this month on the 30th, and current odds of an interest rate hike decision from officials stand at 25.0%.
