The U.S. dollar is modestly stronger to start the week with the Bloomberg Dollar Index rising 0.2%.
Overview
U.S. equity futures are a touch lower following a lackluster session in Europe. Russia continues to dominate geopolitical headlines. Ukraine rejected a Russian demand to surrender and leave the Ukrainian city of Mariupol. U.S. President Joe Biden will speak with European leaders this morning to continue organizing the West’s response to the war in Ukraine. Biden will make a trip to Europe later this week. There is not much on the economic docket today so Fed speakers will get the attention. Atlanta Fed President Raphael Bostic is giving a speech at an economic conference early this morning. Bostic said that he favors six interest rate hikes in 2022, which is fewer than some of his colleagues.
He has pointed to the heightened uncertainty in Ukraine as the reason for his “tempered” confidence in an aggressive rate hike path. Fed President Jerome Powell will speak at the same conference at noon.
What to Watch Today…
- Jerome Powell speech at Noon
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CAD
The Canadian dollar is weaker against the U.S. dollar this morning, falling for the first time in five sessions. The dip comes even as WTI crude futures rose 4% towards 110$ a barrel. A gauge for Canadian consumer sentiment is due out later but there is not much in the way of fundamental data to drive the USD/CAD cross. Instead, the move could be a case of profit-taking after the loonie gained for four consecutive trading days.
AUD
The Australian dollar was the biggest loser overnight, falling 0.5% against the greenback. Much like the loonie, the Aussie had previously risen four consecutive sessions before dropping today. Market participants are pointing to technical reasons for the move. Investors are buying the greenback as “a bit of a hedge with Tokyo closed and thin liquidity markets,” according to a trader with StoneX in Singapore.
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